DA Hike: Government employees will get a gift before Diwali, how much will their salary increase?
Government employees may receive a significant gift from the government before Diwali. Government employees have been awaiting a DA hike for a long time. If media reports are to be believed, the government may increase its dearness allowance before Diwali.
An increase in dearness allowance also leads to a salary increase.
How much will the dearness allowance increase?
If media reports are to be believed, this time the dearness allowance may increase by 3% to 4%. Currently, the dearness allowance is recorded at 55%. Accordingly, the dearness allowance could be 58% or 59%.
Now, let's find out how much the salary increase could be based on this.
How much will the salary increase be?
The basic salary, i.e., ₹18,000, could increase by ₹540, and the basic pension, i.e., ₹9,000, could increase by ₹270. The final decision on this will be taken by the Cabinet between September and October.
How is dearness allowance determined?
A formula related to CPI-IW is used to calculate dearness allowance. If the AICPI-IW increases, it means that the dearness allowance will also increase. However, if it decreases, the dearness allowance will decrease.
How much is the AICPI-IW increasing?
According to data from the Labor Bureau's website, it has been increasing since March.
In March 2025, the CPI-IW was recorded at 143, then in April 2025, it was recorded at 143.5. After this, it increased by 0.5 to 144 in May 2025.
What is dearness allowance?
To deal with rising inflation, every employee is given a dearness allowance along with their basic salary. This is revised twice every year. The amount of increase or decrease is determined based on current inflation. CPI-IW data is used to calculate this allowance.
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