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 AICPIN-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%.

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