Expected Dearness Allowance from January 2012 :

Dearness Allowance to all categories of Central Government employees is being sanctioned by the Government twice in a year, on 1st January and 1st July based on the increase in the average monthly All India consumer price index and it is granted to compensate the price hike above 536 points(Base Year 1982=100) 115.76 Points (Base Year 2001=100). The average increase is calculated up to December for grant of DA from 1st January and up to June for grant of DA from 1st July.

DA is calculated on the basic pay (plus NPA and stagnation increment). Special Pay, Personal Pay etc. are not taken into account for this purpose.

Dearness allowance calculation is based on AICPIN (IW). The statistics has been published by Labour Bureau in the last date of every month for subsequet months. The authentic department of Labour Bureau under Ministry of Labour & Employment computing the Consumer Price Index Numbers for Industrial Workers on base 2001= 100, for this calculation, more than 80 selcted places in over all India and an average monthly consumer prices of 24 essential commodities are taken for the finalise the index.

We are all know that the DA is announcing once in six months i.e., January and July of every year. The index has been taken for the calculation of DA from January to Jnue and July to December. The first instalment was announced in march and the second instalment on September, the next instalment for the year 2012 will be announced by March.

For exact calculation of additional Dearness allowance, the AICPIN-IW received only for two months of July and August. After knowing the index value for remaining four months only, we can compute exact the percentage of additional Dearness allowance from Jan, 2012, even though we can predict with reasonably by our expreience in this field, it may be enhanced minimum of six percent.