As per Press Release Dt.30.06.2025 of Labour Bureau, Govt. of India, the Consumer Price Index for Industrial Workers (AICPI-IW) for the month of May, 2025 has increased by 0.5 point and stood at 144.0 (PRESS RELEASE.PDF)
Hence based on the AICPI-IW of last 12 months, the Dearness Allowance (DA) may increased by 2% to 3% as during July 2025. Accordingly the DA may be expected to reach 57% or 58%.
It is to be noted that DA for Government employees is being increased twice in a year i.e. in January and July.
DA Calculation:
Avg AICPI of past 12 months = (141.4 + 142.7 + 142.6 + 143.3 + 144.5 + 144.5 + 143.7 + 143.2 + 142.8 + 143 + 143.5 + 144.0) x /12 = 143.27
DA = (Avg. AICPI * 2.88 - 261.4) *100 / 261.4 = 57.85%
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