Now the D.A fever started again among all of our Central Government employees. All are eagerly searching to know what will be the D.A from January 2011. Because all of us know that the Dearness allowance is an important component of our salary in this inflationary trend. Here and there some predictions on Dearness Allowance have been published in some websites. But it is based on monthly All India Consumer Price Index for Industrial Workers (Base year 2001=100) announced by the Government from time to time.
The formula for calculating Dearness Allowance is,
Dearness Allowance = (Avg of AICPI for the past 12 months –115.76)*100/115.76
For example if you want to calculate DA with effect from 1.1.2011, get the average of AICPI for the period from 1.1.2010 to 31.12.2010, and apply the same in the above formula
AICPI from Jan-2010 to Sep-2010 have been already published in Labour Bureau website. AICPI for the months of October, November and December are yet to be announced.
The AICPI for first 9 months are
This AICPI (IW) (base year 2001=100) for each month would be available in the Labour Bureau, Department Statistics, Government of India website and would be updated each month.
Though the remaining three months AICPI are not known, we can however assume from the 9 months result of AICPI that the increase in Dearness Allowance may not be less than 5%. So we can expect that the Dearness Allowance may cross 50% level from January-2011.