Dearness Allowance (DA) calculation for PSU employees for Q3 2024-25 (Oct 2024 to Dec 2024)

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 Priceala Index) and the same is taken as a benchmark to determine applicable DA rate.

Ministry of Labour and Employment has published CPI-IW for June 2024, July 2024 and August 2024 as below: (Circular attached)

Based on above published CPI-IW index, DA (Dearness Allowance) for 3^rd quarter of Financial year 2024-25 (i.e for period from October 2024 to December 2024) is worked out as 47.70% as against 44.80% in 2^nd quarter of Financial year 2024-25 (i.e increase of 2.90% for Q3 2024-25)

DA (Dearness Allowance) for last few quarters is as below:

dear

The relevant CPI and DA% can be shown with the help of below diagram:

The methodology for calculation of DA for Q3 2024-25 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:

Hence DA applicable for 3^rd quarter of Financial year 2024-25 (i.e for period from October 2024 to December 2024) will be [(409.63-277.33)/277.33]*100 = 47.71% ~ 47.70% as against 44.80% in 2^nd quarter of Financial year 2024-25.

Therefore, there will be an increase in DA by 2.90% (i.e 47.70% – 44.80%) in 3^rd quarter of Financial year 2024-25.

Ministry of Labour & Employment

Consumer Price Index for Industrial Workers (2016=100) – July, 2024

Posted On: 09 SEP 2024 6:05PM by PIB Delhi

Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling 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. The index for the month of July, 2024 is being released in this press release.

The All-India CPI-IW for July, 2024 increased by 1.3 point and stood at 142.7 (one hundred forty two point seven).

Year-on-year inflation for the month of July, 2024 moderated to 2.15% as compared to 7.54% in July, 2023. The year on year inflation for the month of June, 2024 was 3.67% as compared to 5.57% in June, 2023.

Y-o-Y Inflation based on CPI-IW (General)

All-India Group-wise CPI-IW for June, 2024 and July, 2024:

CPI-IW: Groups Indices

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GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

Shram Bureau Bhawan, Block No. 2,
Institutional Area, Sector 38 (West),
Chandigarh – 160036

F.No. 5/1/2021-CPI

Dated: 30.09.2024

Press Release

Consumer Price Index for Industrial Workers (2016=100) – August, 2024

1. Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling 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. The index for the month of August, 2024 is being released in this press release.

2. The All-India CPI-IW for August, 2024 decreased by 0.1 point and stood at 142.6 (one hundred forty two point six).

3. Year-on-year inflation for the month of August, 2024 stood at 2.44% as compared to 6.91% in August, 2023.

Y-o-Y Inflation based on CPI-IW (General)

4. All-India Group-wise CPI-IW for July, 2024 and August, 2024:

CPI-IW: Groups Indices

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