AICPIN June 2024: July DA Calculation is Over! DA Increased from 50% to 53%!
The Current AICPIN is 141.4
In June 2024, the All India Consumer Price Index for Industrial Workers (CPI-IW) experienced a notable increase of 1.5 points, bringing the index to a new level of 141.4 (one hundred forty-one point four). This significant rise in the CPI-IW is crucial as it directly impacts the calculation of the Dearness Allowance (DA) for central government employees and pensioners. Following the publication of the All India Consumer Price Index Number (AICPIN) for June 2024, the established formula for determining the DA indicates a forthcoming increase of 3%. This means that the DA rate will rise from the current 50% to a total of 53%. This adjustment, effective from 1st July 2024, is particularly pertinent as it will benefit all central government employees and pensioners who receive Dearness Relief, thereby providing them with increased financial support amidst rising living costs.
All India Consumer Price Index for June 2024
The eagerly anticipated AICPIN (All India Consumer Price Index Numbers) data for June 2024 is set to be released, marking a significant milestone in the calculation of the Dearness Allowance (DA). According to the advance release calendar issued by the Labour Bureau, this vital economic indicator will be published on the official Labour Bureau website (labourbureau.gov.in) on the 31st of July 2024, which falls on a Wednesday.
The June 2024 AICPIN figures are particularly crucial as they will play a key role in determining the Dearness Allowance that will take effect from July 2024 for a wide array of beneficiaries, including all groups of Central Government employees, pensioners, family pensioners, Army Personnel, Ex-Servicemen, and Railway staff and officers.
It is noteworthy that the last monthly tenure for the Dearness Allowance was completed in December 2023, leading to the DA that became applicable from 1st January 2024. Now, with the impending release of the June 2024 AICPIN data, the next installment of the Dearness Allowance, which will take effect from 1st July 2024, is poised to be calculated based on this crucial data, making it a topic of significant interest and importance for many across the nation.
AICPIN June 2024: Hike in DA for Government Employees
The Dearness Allowance, a vital component of the compensation package for existing and retired central government employees, is set to be hiked once every six months, a practice that has been in place for a considerable amount of time. This allowance, which aims to cushion the effects of inflation and rising living costs, is meticulously calculated over two distinct periods: from January to June and from July to December, following the formula established by the 7th Pay Commission.
The precise percentage of the first installment of the Dearness Allowance is determined based on the calculations made from July to December and is subsequently disbursed to employees starting from the 1st of January. Conversely, the exact percentage for the second installment is calculated from January to June and is provided to employees beginning on the 1st of July, ensuring that the adjustments reflect the ongoing economic conditions and support the financial well-being of government employees during their service and retirement.
AICPIN June 2024 Table
| M/Y | CPI BY-2001 | CPI BY-2016 |
| Jan-24 | 400 | 138.9 |
| Feb-24 | 401 | 139.2 |
| Mar-24 | 400 | 138.9 |
| Apr-24 | 401 | 139.4 |
| May-24 | 403 | 139.9 |
| Jun-24 | 407 | 141.4 |
DA Hike from 1st July 2024 for CG Employees and Pensioners
After the Labour Bureau officially issued the much-anticipated All-India Consumer Price Index Number (AICPIN) for the month of June 2024, the new calculation for the Dearness Allowance (DA) has been finalized for July 2024, generating excitement among various groups. Yes, this update pertains to the upcoming Dearness Allowance for all categories of Central Government employees, pensioners, and family pensioners, including those serving in the Railways and Defence Forces! The final DA calculation is set to witness an increase of 3% from the existing level, which means that the new DA will rise to an appealing 53% from the current rate of 50%.
As a result, all beneficiaries can expect to see a minimum increase of Rs. 540 per month reflected in their salary slips, effective from the 1st of July 2024. It’s crucial to highlight that this 3% increase is calculated based on the individual’s basic salary. For instance, if an employee’s basic salary is Rs. 50,000, they will receive a significant hike of Rs. 1,500 per month added to their gross pay. Therefore, this news is undoubtedly exciting and represents a significant financial boost for all beneficiaries of the Dearness Allowance across India, as it underscores the government’s continued efforts to enhance the financial well-being of its employees and pensioners.
50% + 3% = 53%
Existing DA Rate + Additional DA Rate = Current DA Rate