An important update is expected for central government employees this September. The July data of the AICPI (All India Consumer Price Index) index, which is the basis for the revision of dearness allowance (DA) figures, is going to be released this month. This figure plays an important role in the calculation of dearness allowance.
Importance of AICPI data for DA calculation
DA is calculated every six months based on AICPI data. Data from January 2024 to June 2024 has been released, and July data is yet to come. In January, the AICPI index was at 138.9 points. In February, this figure reached 139.2 points, in March it was again at 138.9 points, in April it reached 139.4 points and in May it reached 139.9 points. The figure for the month of June has reached 141.4 points.
Based on these figures, dearness allowance has reached 53.36 per cent. However, this figure may increase further due to the possible increase in July figures. As per the current estimates, dearness allowance can go up to 53 per cent, but in case of a big jump in July figures, DA can also reach 54 per cent.
Previous changes and current expectations
In the last three changes, dearness allowance has increased by 4 per cent. In 2023, central employees got an 8 per cent increase, due to which they are currently getting 50 per cent DA. However, this time the possibility of an increase of 4 per cent is less, as the current figures show the possibility of an increase of up to 3 per cent. But, after the July figures come, this possibility can also increase to 4 per cent.
Cabinet meeting and possible announcement
A cabinet meeting is going to be held on the 25th of September, in which many important issues will be discussed. An announcement can also be made in this meeting regarding dearness allowance. Although no official update has been released yet, according to media reports, a positive update can be received about DA in this meeting.
State level announcements
Recently, the Jharkhand state government has also announced an increase in the dearness allowance of its government employees. The Hemant Soren government of Jharkhand on August 29 approved the proposal to increase the dearness allowance from 230 per cent to 239 per cent. Under this proposal, state employees will get the benefit of this increase in dearness allowance.
Such announcements and figures are important for central and state government employees and ensure that the effect of real inflation is taken into account in their salary. The update of a possible increase in dearness allowance in the month of September can provide relief to the employees.