The Centre is all set to change the base year for the consumer price index for industrial workers (CPI-IW). If it happens, there will be a possible hike in the minimum wage of the workers and the dearness allowance (DA) of Central government employees.
Union Labour and Employment Minister Santosh Kumar Gangwar is likely to release the new CPI-IW index on October 21. The new index will be released, keeping 2016 as the base year, for September 2020, Business Standard reported citing official sources.
“The government will also announce that it will revise the CPI-IW base year again in 2021 and the work on it will begin next year,” the official said, requesting anonymity.
We are revising it in next few days and it will benefit a cross-section of workers and pensioners,” Mint quoted Apurva Chandra, union labour secretary, as saying.
The revision is expected to result in an increase in salaries of the industrial workers and the central government employees.
DA is revised every six months to keep pace with the inflation rate in the economy. It is worth mentioning that the 7th Pay Commission had chosen the CPI-IW as the index to adjust inflation for central government employees.
Meanwhile, the hike may take time due to the earlier announcement of the Centre to put a freeze on any hike in the DA of its employees till July 2021, due to the Covid-19 pandemic.