Dearness Allowance (DA) calculation for PSU employees for Q1 2025-26 (April 2025 to June 2025)
As we know, DA (Dearness Allowance) is paid as a certain percentage of basis pay. For example if the Basic Salary of an employee is Rs 50,000 per month and DA rate is 30% then he will get DA of Rs 15,000 per month in addition to Basic salary and other applicable allowances (like House Rent Allowances etc).
Ministry of Labour and Employment has use to publish the data of CPI (Consumer Price Index) and the same is taken as a benchmark to determine applicable DA rate.
Ministry of Labour and Employment has published CPI-IW for December 2024, January 2025 and February 2025 as below: (Circular attached)
| Month | CPI-IW index |
| December 2024 | 143.70 |
| January 2025 | 143.20 |
| February 2025 | 142.80 |
Based on above published CPI-IW index, DA (Dearness Allowance) for 1st quarter of financial year 2025-26 (i.e for period from April 2025 to June 2025) is worked out as 48.70% as against 49.60% in 4th quarter of Financial year 2024-25 (i.e decrease of 0.90% for Q1 2025-26).
DA (Dearness Allowance) for last few quarters is as below:
| FY | Quarter | DA rate | Change |
| 2023-24 | Q1 | 37.70% | |
| 2023-24 | Q2 | 39.20% | 1.50% |
| 2023-24 | Q3 | 43.80% | 4.60% |
| 2023-24 | Q4 | 43.70% | -0.10% |
| 2024-25 | Q1 | 44.30% | 0.60% |
| 2024-25 | Q2 | 44.80% | 0.50% |
| 2024-25 | Q3 | 47.70% | 2.90% |
| 2024-25 | Q4 | 49.60% | 1.90% |
| 2025-26 | Q1 | 48.70% | -0.90% |
The relevant CPI and DA% can be shown with the help of below diagram:
The methodology for calculation of DA for Q1 2025-26 is explained below:
The adjusted CPI (i.e Multiplied CPI) for DA calculation would be 2.88 times of published CPI. The average CPI for last 3 months (one month prior to applicable quarter) is as below:
| Month | CPI-IW index | Adjusted CPI | Remark |
| December 2024 | 143.70 | 413.86 | CPI-IW index * 2.88 |
| January 2025 | 143.20 | 412.42 | CPI-IW index * 2.88 |
| February 2025 | 142.80 | 411.26 | CPI-IW index * 2.88 |
| Average adjusted CPI | 412.51 |
Hence DA applicable for 1st quarter of Financial year 2025-26 (i.e for period from April 2025 to June 2025) will be [(412.51-277.33)/277.33]*100 = 48.74% ~ 48.70% as against 49.60% in 4th quarter of Financial year 2024-25.
Therefore, there will be an decrease in DA by 0.90% (i.e 48.70% – 49.60%) in 1st quarter of financial year 2025-26.
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