Dearness Allowance (DA) calculation for PSU employees for Q4 2024-25 (Jan 2025 to Mar 2025)

Dearness Allowance (DA) calculation for PSU employees for Q4 2024-25 (Jan 2025 to Mar 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 September 2024, October 2024 and November 2024 as below: (Circular attached)

Based on above published CPI-IW index, DA (Dearness Allowance) for 4^th quarter of financial year 2024-25 (i.e for period from January 2025 to March 2025) is worked out as 49.60% as against 47.70% in 3^rd quarter of Financial year 2024-25 (i.e increase of 1.90% for Q4 2024-25).

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

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

The methodology for calculation of DA for Q4 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 4^th quarter of Financial year 2024-25 (i.e for period from January 2025 to March 2025) will be [(415.01-277.33)/277.33]*100 = 49.64% ~ 49.60% as against 47.70% in 3^rd quarter of Financial year 2024-25.

Therefore, there will be an increase in DA by 1.90% (i.e 49.60% – 47.70%) in 4^th quarter of financial year 2024-25.

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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
Dated: 05.12.2024

F.No. 5/1/2021-CPI

Press Release

Consumer Price Index for Industrial Workers (2016=100) – October, 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 October, 2024 is being released in this press release.

2. The All-India CPI-IW for October, 2024 increased by 1.2 point and stood at 144.5 (one hundred forty four point five).

3. Year-on-year inflation for the month of October, 2024 stood at 41% as compared to 4.45% in October, 2023.

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

4. All-India Group-wise CPI-IW for September, 2024 and October, 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
Dated: 06.01.2025

F.No. 5/1/2021-CPI

Press Release

Consumer Price Index for Industrial Workers (2016=100) – November, 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 November, 2024 is being released in this press release.

2. The All-India CPI-IW for November, 2024 remained stationary at 5 points (one hundred forty four point five).

3. Year-on-year inflation for the month of November, 2024 stood at 3.88% as compared to 98% in November, 2023.

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

4. All-India Group-wise CPI-IW for October, 2024 and November, 2024:

CPI-IW: Groups Indices