125 percent DA likely to be paid from January 2016

LABOUR BUREAU, MINISTRY OF LABOUR & EMPLOYMENT has released the All India Consumer Price Index for Industrial employees for the Month of December 2015 on 29th January 2016. The All-India CPI-IW for December, 2015 decreased by 1 point and pegged at 269. However, this month AICPIN most eagerly expected by all the central government employees. Because this is the Final month of last 12 Months AICPIN to determine the Dearness Allowance to be paid from January 2016.

S.No	Month	AICPIN
1	January,2015	254
2	February,2015	253
3	March,2015	254
4	April,2015	256
5	May,2015	258
6	June,2015	261
7	July,2015	263
8	August,2015	264
9	September,2015	266
10	October,2015	269
11	November, 2015	270
12	December, 2015	269

AICPIN average = 261.41666

As expected, the Percentage of DA from January 2016 will be raised to 125% from existing 119% with the increase of 6%.

The AICPIN for the Month of December 2015 released by Labor bureau, put an end to all debates and assumptions over expected DA from January 2016. Last 12 Months AICPIN from January 2015 to December 2015 are required to calculate the rate of DA to be paid from January 2016. So now the exact rate of DA can be calculated after last 12 Months AICPIN are available.

Since the AICPIN for December 2015 came down by one point to 269 from the previous months 270 points, affected the DA rate reaching 126 %. It is expected that AICPIN for the Month of December will increase by 2 points and peg at 272 points. In that case, the average 12 months AICPIN will be 261.66. If this average applied in the formula to calculate the DA , the DA from January 2016 will be 126.04 with the increase of six percentage . Since December AICPIN decreased by 1 points the average AICPIN for the past 12 Months stands at 261.41 and this is the factor which restricted the DA rate with 5% increase.

DA = ( Avg of AICPIN for the past 12 months – 115.76)*100 /115.76

      = (261.41666 -115.76)*100/115.76

        =125.826%

According to the prescribed formula to calculate the percentage of DA, the exact rate of Dearness Allowance to paid from January 2016 is 125%.

The decision of enhancing the rate of DA from January 2016 will be declared after the approval Union cabinet in the first week of March 2016.

Source : govtstaffnews.in