Saturday, July 31, 2010

Likely Rate of Dearness Allowance (DA) For July-Dec 2010

The Labour Bureau, Government of India has released All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of June 2010. The value of the index for June 2010 is 174. Based on the figures of last relevant six months the Dearness Allowance for Central Government Employees will be raised to 45% i.e. 10% increase over current rate of 35%.

The formal orders, however will be issued in Sept 2010.
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2 comments:

  1. AnonymousAugust 7, 2010 at 12:44 PM

    Good news. But is it reliable? Please confirm.

    ReplyDelete
  2. RajAugust 8, 2010 at 10:53 AM

    The calculation of the rate of DA is based on the percentage increase in the value of AICPI-IW (or All India Consumer Price Index for Industrial Workers) over its reference value. The reference value for latest series 2001=100 is 115.76.
    For this purpose the current value is calculated as average of last 12 monthly values from Jan to Dec or July to June as applicable.
    The AICPI (IW) values for last 12 months are:
    Jul-09 160
    Aug-09 162
    Sep-09 163
    Oct-09 165
    Nov-09 168
    Dec-09 169
    Jan-10 172
    Feb-10 170
    Mar-10 170
    Apr-10 170
    May-10 172
    Jun-10 174
    Avg value comes to 2015/12 = 167.917
    Percentage increase over 115.76 is 167.917/115.76 = 1.4506
    i.e. an increase of 45.06% indicating a rate of 45%

    All DA announcements since 2006 have strictly adhered to this formula and there has been no deviation. This time around too we can safely assume that DA will be announced as per this formula only.

    Regards

    ReplyDelete

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