DA/DR Hike! Expected DA/DR will be 58% from July 2025, Ministry Of Labour released Consumer Price Index for Industrial Workers (CPI-IW) for May 2025
Big News for Central Government employees and pensioners! Dearness Allowance (DA) and Dearness Relief (DR) are expected to be 58% from July 2025. This much DA increase is expected after the Ministry of Labour & Employment released the All-India Consumer Price Index for Industrial Workers (CPI-IW) for May 2025, which recorded a 0.5-point increase, bringing the index to 144.0.
CPI-IW for May 2025
Year-on-year inflation for the month of May, 2025, stood at 2.93% as compared to 3.86% in May, 2024. The All-India CPI-IW for May, 2025 increased by 0.5 point and stood at 144.0 (one hundred forty-four).
So as per expectations, DA/DR hike may reach upto 58% of central government employees. But finally, the Union Cabinet, Ministry of Finance and the 7th Pay Commission will release the final DA hike update. DA/DR is calculated based on the 12-month average of the CPI-IW.
According to official data from the Labour Ministry, the year-on-year inflation for May 2025 stood at 2.93%, a decrease compared to 3.86% recorded in May 2024. The CPI-IW is drafted from price data collected across 317 markets in 88 industrial centers. It is a crucial signal for calculating retail inflation affecting workers and pensioners.
