Expected Dearness Allowance from July 2014

Expected Dearness Allowance from July 2014

Recently the issue of 50% DA Merger has reached the peak of expectations. Though the central government knew this development, the govt has knowingly said nothing against or favor of 50% DA Merger. Its silence on this important issue simply added the fuel to the fire of expectation. After the Election announcement, the hope on 50% DA merger is now slowly eroding. Many central government employees Federations expressed their disappointment with 7th CPC Terms of reference and merger of 50% DA was not considered by central government. After this disappointment the central government employees are now getting back to their routines. So they have started thinking about what next..!

As the rate of dearness allowance from January 2014 has been declared, the necessary order for payment of Additional installment of Dearness Allowance from January 2014 has to be issued by Finance Ministry. The enhanced rate of Dearness allowance will be paid w.e.f .1.1.2014. The enhanced rate will be paid with the disbursement of salary for the month of March 2014. The increase of dearness allowance became due from January 2014 to February 2014 will be paid as arrears.

Let us move on to ‘Expected dearness allowance from July 2014’

what will be the rate of DA from July 2014 ?

The AICPIN for Industrial Workers for Seven Months from July 2013 to January 2014 have been released by Labour Bureau. The AICPIN for last two Months i.e December2013 and January 2014 have been declined by 4 and 2 points and pegged at 239 and 237 respectively. At present it is quite difficult to predict the trend of the Consumer Price Index for remaining 5 Months, as so many factors like election and policies of new government involved in it.

However, according to these seven months AICPIN, we have three Probabilities …



Expected Increase in Dearness allowance from      July 2014

Expected  DA from July 2014


If this declining trend continues for remaining 5 Months by 1 or 2 points




If the trend continues with movement between plus or Minus 2 points




If it continues with increasing trend by 2 points



According to the AICPIN released till now, the above possibilities have been arrived. As per above prediction the expected dearness allowance from July 2014 will be from 103% to 107%

Source: www.gservants.com

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