A complete reference blog for Indian Government Employees

Sunday, 26 July 2015

Popular News: Central Government Employees DA from July 2015 will be 119%

Popular News: Central Government Employees DA from July 2015 will be 119%
Two Point increase in CPI (IW) provides scope for 6% likely increase in DA payable to Central Government Employees and Pensioners from July 2015
Rewind Central Government Employees DA from July 2015 will be 119% – All India Consumer Price Index (Industrial Workers) for May 2015 released by Labour Bureau – Two Point increase in AIPCI(IW)

DA from July 2015 – As estimated in our article on 30th May 2015, Dearness Allowance for Central Government Employees with effect from July 2015 will be increased by 6% thanks to two point increase in All India CPI (IW) for May 2015.

Except CPI for June-2015, all data for calculation of Dearness Allowance from July 2015 are available now.

Month Actual AICPI-IW
Jul-2014 252
Aug-2014 253
Sep-2014 253
Oct-2014 253
Nov-2014 253
Dec- 2014 253
Jan-2015 254
Feb-2015 253
Mar-2015 254
Apr-2015 256
May-2015 258
Jun-2015 To be released

We have to take the assumed value for CPI-IW only for June 2015. It is found that even for increase of 6 points in June 2015 from the existing CPI of 258, DA from July 2015 will be 119%. Only when CPI is increased to 265 from the existing level of 258, DA from July 2015 will be increased to 120%.

DA from Jul 2015 [(252+253+253+253+253+253+254+253+254+256+258+265)-115.76]*100/115.76
= 120% (7% increase in DA from July 2015)

On the lower side, we found that only when Consumer Price Index fell down to 250 i.e when CPI (IW) is getting decreased by 8 Points, Central Government Employees DA from July 2015 will be fixed at 118%.

DA from Jul 2015 [(252+253+253+253+253+253+254+253+254+256+258+250)-115.76]*100/115.76
= 118 % (5% increase in DA from July 2015)

From the above, it is clear that chances for decrease of 8 Points in CPI in a single month  or increase of 7 points in same period are very remote. So, we can very well conclude that DA from July 2015 will be 119%.

Source: Central Government News
Share:

Featured post

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019

Cabinet approves release of an additional instalment of DA to Central Government employees and DR to Pensioners, due from 1.1.2019   ...

Blog Archive

About The Author