DA Likely To Be Hiked By 6% As No CPI-IW Rose Last 5 Months

 The central government employees have become entitled to 6 percent additional Dearness Allowance (DA) from January 1, 2015, even as the Consumer Price Index number for Industrial Workers remained stationary for the fifth month in a row.

 

Finance Minister Arun Jaitley

The Consumer Price Index number for Industrial Workers (CPI-IW), which is used as a basis for computation of dearness allowance for central government employees, remained stationary at 253 in December 2014, an official release said.

The index was at the same level in previous month.

However, the 12-month moving average of CPI-IW moved from 240 in July to 246 in January 2015 and consequently the additional DA of employees would go up from 107 per cent to 113 per cent from January 1, 2015, labour bureau sources said here.

The inflation based on CPI-IW increased to 5.86 per cent in December 2014, from 4.12 per cent in November.

Food inflation based on the index too jumped to 5.73 per cent during the month, from 2.56 per cent in previous month.