Expected DA from July 2022 is now 38%

Expected DA from July 2022 is now 38% with a sharp 1.7 pts rise in April CPI-IW

The All-India Consumer Price Index for Industrial Workers (CPI-IW) for April 2022 increased by 1.7 points and stood at 127.7, according to a statement released by the Labour Bureau, under the Ministry of Labour and Employment on Tuesday. The figures are keenly watched by the central government employees as the DA or the dearness allowance hike is determined by this index.

The Labour Bureau compiles the figures for a month on the last day of the subsequent month. Index for Industrial Workers based on retail prices collected from 317 markets in 88 industrially important centres. The index is compiled for 88 cities and India as a whole

On a one-month percentage change, it increased by 1.35 per cent with respect to the previous month compared to an increase of 0.42 per cent recorded between corresponding months a year ago.

The maximum upward pressure in the current index came from the Food and Beverages group contributing 0.80 percentage points to the total change. The higher prices of Rice, flour, and tomatoes were mainly responsible for the increase in All-India CPI-IW.

The Dearness Allowance for the Central Government Employees is calculated based on the 12-month average CPI-IW index. The calculation of the DA from July requires two more months of CPI-IW figures, May 2022 and June 2022. However, with the available figures, ad the current inflation, assuming the indices will not go down, the Dearness Allowance or DA from July 01, 2022, will be 38%, a hike of 4%. This will be happy news for the central government employees who are reeling under the pressure of price rises.