The Dearness Allowance payable to Central Government Employees and Pensioners is determined based on All India Consumer Price Index for Industrial Workers. AICPI (IW) for the month of June 2012 has increased from 206 to 208.Basing on the calculation, there will be 7% increase and the expected D.A from 1st JULY 2012 is 72%. DA with effect from 1st July 2012 would be officially announced during September/October 2012.
The D.A calculation is as follows :
Dearness Allowance with effect from 1st January every year | (Average of AICPI-IW for the months from January to December of previous year – 115.76)X100/115.76 |
Dearness Allowance with effect from 1st July every year | (Average of AICPI-IW for the months from July of previous year to June of this year – 115.76)X100/115.76 |
115.76 is a factor which converts 1982 series AICPI (IW) (Base 1982=100), which was applicable prior to 6CPC to 2001 series AICPIW (Base 2001=100). In turn, This is arrived at by dividing the 1982 series AICPI by a linking factor which is 4.63 (536/4.63=115.76) | |
Calculation of DA with effect from 1st July 2012:
Month | AIl Indian Consumer Price Index (AICPI-IW) |
July 2011 | 193 |
Aug 2011 | 194 |
Sep 2011 | 197 |
Oct 2011 | 198 |
Nov 2011 | 199 |
Dec 2011 | 197 |
Jan 2012 | 198 |
Feb 2012 | 199 |
Mar 2012 | 201 |
Apr 2012 | 205 |
May 2012 | 206 |
Jun 2012 | 208 |
Average of AICPI (IW) for the period from July-2011 to June-2012:
(193+194+197+198+199+197+198+199+201+205+206+208)/12 | = 199.58 |
DA with effect from 1st July 2012 | = (199.58-115.76)X100/115.76) |
= 72.41 | |
Rounded to 72 |
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