The month of September can be an important time for central government employees because, at the beginning of this month, the figures of AICPI (Evidence of Industrial Consumer Price Index) for July are going to be released. These figures play an important role in the calculation of dearness allowance (DA). Dearness allowance is revised based on the AICPI index, which happens twice a year.
Figures so far
Figures from January 2024 to June 2024 have been released. In January, the AICPI index was at 138.9 points. In February it rose to 139.2 points. After this, it remained stable at 138.9 points in March, 139.4 points in April and 139.9 points in May. The figures for June have reached 141.4 points. Based on these figures, the dearness allowance has currently reached about 53.36%.
July figures and estimates
The figures for July have not been released yet. But if a big jump is seen in these figures, then DA can also reach 54%. As per the current figures, there is a possibility of a 3% increase in dearness allowance, although the possibility of a 4% increase cannot be ruled out either.
Previous revisions
In the last three revisions, dearness allowance came with a 4% increase. In 2023, central employees got an 8% hike, which currently makes their DA 50%. But this time an increase of 3% is expected.
Dearness Allowance Review Process
Dearness allowance is reviewed twice a year. This review is based on the data of the AICPI index. The government decides to increase or cut dearness allowance based on 6 months’ data.
Possibility of the announcement in the cabinet meeting
The cabinet meeting is going to be held on the 25th of September, in which an announcement can also be made regarding dearness allowance. Although there is no official confirmation on this yet, according to media reports, an important decision can be taken on DA in this meeting.
DA hike in Jharkhand
Recently, the Jharkhand state government has announced to increase the dearness allowance of its employees from 230% to 239%. This decision was taken in the cabinet meeting on 29 August.
Thus, the month of September can prove to be an important month for central government employees in terms of dearness allowance, and they are expected to get an important update on it soon.