7th Pay Commission – Government Unlikely to Announce Dearness Allowance for January – Zee News :

7th Pay Commission – Government Unlikely to Announce Dearness Allowance for January 2016 as the same has been proposed to be merged with Pay – If the DA announced in January is higher than 125%, government will be compelled to revise the new salaries.
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As per an article published in Zee News recently, which has also confirmed GConnect’s view that if CPI-IW touches 272 in December 2015, 7th Pay Commission Pay Fixation method is poised for revision.  Zee news also reports that DA from January 2016 may not be paid as DA of 125% has been proposed to be merged with pay with effect from January 2016 by 7th Pay Commission.
GConnect is of the view that if 7th Pay Commission is implemented before April 2016, then increase in DA from January 2016 may not be announced separately as it is done normally.  However, new pay on implementation of 7th pay Commission report would take care of this increase in DA with effect from January 2016 as DA as on 1st January 2016 would have been merged with Pay.  If DA from January 2016 is 126% then we can expect revision of fitment factor to 2.58.
On the other hand, if 7th Pay Commission report is implemented after April 2016, then Central Government Employees including Railway Employees and Defence Personnel can expect the announcement of granting additional installment of DA with effect from January 2016, which will be adjusted in arrears of pay and allowance on account of revision of pay on implementation of 7th Pay Commission report with effect from January 2016.
It may be recalled that DA from January 2006 to July 2008 was paid as usual and when 6th Pay Commission was implemented in 2008, through due and drawn statement for payment of Arrears of pay from January 2006, DA paid on pre-revised pay was adjusted.  It appears that Govt would follow the same procedure this time also
We have given below the text of the report of Zee News on this topic. 

Central government employees unhappy with the recommendations of the 7th Central Pay Commission on salary hike, may be waiting for the Labour Ministry to announce the All India Consumer Price Index or AICPIN (for Industrial workers) for the month of December with effect from January 2016
On the basis of AICPIN, government announces the Dearness Allowance( DA) for Central Government employees. The DA is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay on account of inflation.
After all its a matter of one’s monthly salary hikes! It is not unfair to hope that AICPIN for December is high, resulting in the DA higher than 125%, which the 7th CPC pegged for calculating the minimum pay determination and the fitment factor for the new pay structure.
The government reviews the DA every six months. The Cabinet, in September, had approved a proposal to hike dearness allowance by 6 percent to 119 percent of the basic pay, effective from July 1, 2015.
If the DA announced in January is higher than 125%, government will be compelled to revise the new salaries.
Since the 7th PC has already merged the DA with the new pay, government is unlikely to announce DA in January 2016 at all.
When the 6th Pay Commission’s recommendations were implemented from January 2006 onwards, the DA for the months of January 2006 to June 2006 was not paid. DA was issued only from the month of June 2006.
Source: Zee News