Dearness Allowance: AICPI-IW rises to 143.5, boosting July DA hike prospects for Central Govt employees

The second installment of the dearness allowance hike in 2025 for Central Government employees is due to be effective from July 1, 2025. Ahead of the likely DA hike, the All India Consumer Price Index for Industrial Workers (AICPI-IW) has increased by 0.5 points to 143.5.

"The All-India CPI-IW for April, 2025 increased by 0.5 point and stood at 143.5 (one hundred forty-three point five)," the Labour Bureau said in a press release dated May 30, 2025.

However, inflation in the month of April 2025 moderated from 2.95% in the previous month to 2.94%. Moreover, the year-on-year inflation for the month of April, 2025, stood at 2.94% as compared to 3.87% in April, 2024.

The Labour Bureau is an attached office of the Ministry of Labour and Employment. It compiles the Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.

Data shows a jump in respective indices for food & beverages, clothing & footwear, fuel & light, Pan, Supari, Tobacco & Intoxicants.

The index for food and beverages increased by 0.3 points from 146.2 in March 2025 to 146.5 in April 2025. The index for clothing & footwear increased from 149.4 in March to 150.4 in April; while the index for fuel & light jumped from 148.5 to 153.4. The index for Pan, Supari, Tobacco & Intoxicants also increased from 164.8 to 165.8.

DA hike possible?

The consecutive increase in AICPI-IW in March and April has increased DA hike for Central Government employees. However, the final decision will depend on the Government. DA is generally revised twice a year, first from January 1 and second from July 1.