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Expected DA from January 2016 – Two Point increase in CPI for Dec
2015 could take it to 126% which is 1% more than what was reckoned for
7th Pay Commission revised Pay fixation.
If DA from January 2016 touches 126%, 7th Pay Commission fitment formula and Multiplication factor of 2.57 may require upward revision
Consumer Price Index (Industrial Workers) for the month of November 2015 has been released recently by Govt. We have one point increase in CPI for November 2015 which has moved from 269 to 270.Consumer Price Index from January 2015 to November 2015
| Month | Actual AICPI-IW |
| Jan-2015 | 254 |
| Feb-2015 | 253 |
| Mar-2015 | 254 |
| Apr-2015 | 256 |
| May-2015 | 258 |
| Jun-2015 | 261 |
| July-2015 | 263 |
| Aug-2015 | 264 |
| Sep-2015 | 266 |
| Oct-2015 | 269 |
| Nov-2015 | 270 |
| Dec-2015 | Not released |
DA from January 2016 – Estimation for 125%:
Based on actual CPI-IW for 11 months from January 2015 to November
2015 which span from 254 to 270 and estimated index for the month of
December 2015, it is almost certain that Dearness Allowance from January
2016 payable to Central Government Employees including Railway Employees and Defence Personnel will not be less than 125% (6% increase).
Even a 12 point fall in CPI-IW from 270 to 258 in December 2015 will not affect the DA from January 2016 clocking 125%.
Even a 12 point fall in CPI-IW from 270 to 258 in December 2015 will not affect the DA from January 2016 clocking 125%.
| DA from Jan 2016= | [(254+253+254+256+258+261+263+264+266+269+270+258)-115.76]*100/115.76 |
| = | 125 % (6% increase in DA from Jan 2016) |
DA from January 2016 – Estimation for 126%:
Our Proposition discussed in the earlier article on the chances for
DA from January 2015 reaching 126% (7% increase) still holds good as two
point increase in the CPI-IW in December 2015 would take DA from
January 2016 to 126%.
Click here to read: DA from January 2016 may touch 126%
Click here to read: DA from January 2016 may touch 126%
