Latest news with #CPI-AL
News18
21-07-2025
- Business
- News18
DA Hike July 2025: Central Government Employees Likely To Receive 4% Hike In Dearness Allowance
Going by the latest inflation numbers, the July 2025 DA hike for central government employees is likely to be at 4%. 7th Pay Commission: Even as central government employees are awaiting the constitution of the 8th Pay Commission, they are likely to receive at least one more dearness allowance (DA) hike under the current 7th Pay Commission. Going by the latest inflation numbers, the July 2025 DA hike for central government employees is likely to be at 4%. The DA hike is announced twice a year in February-March and September-October, with retrospective effect from January and July each year, respectively. It helps employees offset the impact of inflation. The current DA rate stands at 55% after a 2% hike was implemented in March this year. DA is given to government employees, while DR is given to pensioners. The hike in dearness allowance (DA) is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which is released monthly by the Labour Bureau. The government calculates the DA hike by averaging CPI-IW data for the preceding 12 months, and applying a specific formula under the 7th Pay Commission: The figure 261.42 is the base CPI-IW average (2016 base year) set under the 7th Pay Commission. While CPI-IW data till May 2025 is not fully consolidated, the latest inflation trends give a partial view of price pressures. According to the labour ministry, retail inflation for agricultural and rural labourers (measured via CPI-AL and CPI-RL) cooled in May 2025 to 2.84% and 2.97%, respectively, from over 3.5% in April. CPI-AL and CPI-RL dropped slightly to 1305 and 1319 points, showing a downward trend in rural inflation. Although CPI-AL and CPI-RL are not directly used to calculate DA, they signal broader inflation trends that may be reflected in CPI-IW too. If CPI-IW stabilises or rises modestly in the coming months, the government might approve a DA hike of 3% to 4%, taking the allowance to 58% or 59%. The final hike figure will be known only after CPI-IW data for June 2025 is released — by the end of July. Following this, the Union Cabinet typically approves the new DA rate in September and October, which is paid out with arrears from July. 7th Pay Commission DA Hike: How Much Will Salary Increase? On a 3% DA hike, the salary of the entry-level central government employee, who has a basic salary of around Rs 18,000 per month, will increase nearly Rs 540 per month, effective from July 1, 2025. If somebody's salary is Rs 30,000 per month and has Rs 18,000 as the basic pay, he or she now gets Rs 9,990 as dearness allowance, which is 53 per cent of the basic pay. However, after the expected 3 per cent hike, the employee will get Rs 10,440 per month, which is Rs 540 higher. First Published: July 21, 2025, 16:05 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hans India
20-06-2025
- Business
- Hans India
Inflation eases further in May for India's farm and rural workers
New Delhi: The year-on-year inflation rates based on the all-India consumer price index for agricultural labourers (CPI-AL) and rural labourers (CPI-RL) for May this year declined to 2.84 per cent and 2.97 per cent, respectively, compared to 7 per cent and 7.02 per cent in the same month of the previous year, bringing respite to poor households, figures released by the Ministry of Labour & Employment on Friday showed. The inflation rate has also come down on a month-to-month basis, as corresponding figures for April 2025 stood at 3.48 per cent for CPI-AL and 3.53 per cent for CPI-RL. The inflation rate for agricultural and rural labourers has been steadily declining over the last seven months. This comes as a welcome relief for these vulnerable segments that are hit hardest by spiralling prices. It also leaves more money in their hands to buy a wider range of goods, leading to a better lifestyle. The decline in inflation for farm and rural workers has also come in the backdrop of a fall in the country's overall inflation based on the Consumer Price Index (CPI) to 2.82 per cent in May this year compared to the same month of the previous year. This is the lowest level of retail inflation since February 2019, according to a statement issued by the Ministry of Statistics on Thursday. Food Inflation declined to 0.99 per cent during May, which is the lowest since October 2021. This is the seventh month in a row that food inflation has registered a decline as the agricultural output has been on the rise. The significant decline in inflation during the month is mainly attributed to the decline in inflation of pulses, vegetables, fruits, cereals, household goods & services, sugar, and eggs. Inflation also declined due to a moderation in fuel prices, with international prices of crude oil coming down during the month. The RBI has revised its inflation outlook for 2025-26 downwards from the earlier forecast of 4 per cent to 3.7 per cent, Reserve Bank Governor Sanjay Malhotra said during the monetary policy review meeting earlier this month. CPI inflation for the financial year 2025-26 is now projected at 3.7 per cent, with Q1 at 2.9 per cent, Q2 at 3.4 per cent, Q3 at 3.9 per cent, and Q4 at 4.4 per cent. The easing of inflation has enabled the RBI to go in for an interest rate cut and a reduction in the cash reserve ratio (CRR)for banks to spur growth in the economy.
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Business Standard
20-06-2025
- Business
- Business Standard
Retail inflation for farm, rural workers eases to below 3% in May
The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 2 points and 1 point in May 2025 to stand at 1305 and 1319 points, respectively Press Trust of India New Delhi Retail inflation for farm and rural workers eased to 2.84 per cent and 2.97 per cent in May from 3.48 per cent and 3.53 per cent, respectively, in April this year, according to data released by the Labour Ministry on Friday. According to the data, the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 2 points and 1 point in May 2025 to stand at 1305 and 1319 points, respectively. The CPI-AL and CPI-RL were 1307 points and 1320 points in April 2025. "The year-on-year inflation rates based on CPI-AL and CPI-RL for May 2025 were recorded at 2.84 per cent and 2.97 per cent, respectively, compared to 7.00 per cent and 7.02 per cent in May 2024. The corresponding figures for April 2025 stood at 3.48 per cent for CPI-AL and 3.53 per cent for CPI-RL," said the labour ministry.
Economic Times
20-06-2025
- Business
- Economic Times
Retail inflation for farm, rural worker eases in May
Retail inflation for farm and rural workers eased to 2.84 per cent and 2.97 per cent in May from 3.48 per cent and 3.53 per cent, respectively, in April this year, according to data released by the Labour Ministry on Friday. According to the data, the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 2 points and 1 point in May 2025 to stand at 1305 and 1319 points, respectively. The CPI-AL and CPI-RL were 1307 points and 1320 points in April 2025. "The year-on-year inflation rates based on CPI-AL and CPI-RL for May 2025 were recorded at 2.84 per cent and 2.97 per cent, respectively, compared to 7.00 per cent and 7.02 per cent in May 2024. The corresponding figures for April 2025 stood at 3.48 per cent for CPI-AL and 3.53 per cent for CPI-RL," said the labour ministry.
Business Standard
20-06-2025
- Business
- Business Standard
All-India consumer price inflation for agricultural labourers softens further to 2.84% in Apr-25
The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) (Base: 1986-87=100) decreased by 2 points and 1 point for the month of May 2025, to stand at 1305 and 1319 points, respectively. The year-on-year inflation rates based on CPI-AL and CPI-RL for May 2025 were recorded at 2.84% and 2.97%, respectively, down sharply compared to 7.00% and 7.02% in May 2024. The corresponding figures for April 2025 stood at 3.48% for CPI-AL and 3.53% for CPI-RL.
