Amidst our focus shifted to expected DA from July 2017, the News of
Central Govt approval for 2% DA hike is not received with much
enthusiasm by CG Staffs.
As the Central Government staff are not satisfied with this hike for
various reasons, the DA from July 2017 will be expected much higher than
this.
As per the Central Federation opined, the method of DA Calculation to be
reviewed as it is some extent not co related with the Consumer Price
Index properly. The percentage of DA hike approved so far has somehow in
line with this view point of Federations.
Now It is expected that Dearness Allowance from July 2017 will be from
2% to 3%, as the AICPIN Index is in down trend from August 2016. The
AICPIN for July 2016 was 280. After that the CPI numbers are decreasing
every month. In fact, the 280 is first and last Highest CPI Point in the
last 7 Months AICPIN Index from July 2016. So Expecting higher DA hike
for July 2017 may however lead to wrong prediction.
The 12 Months AICPIN required to calculate the DA from July 2017 are
July 2016 to June 2017. In the last 7th Months from July 2016, AICPIN
has started from 280 and now stands at 274.
If the CPI number increases 1 point consistently for the remaining five
months, again the DA hike will be 2% from July 2017. If the increase is
two points in every month from February 2017 to June 2017, then the
Expected DA from July 2017 may increase from 4% to 7% with 3% DA Hike.
Now the AICPIN for the Month of February 2017 also endorses that
Article on Dearness Allowance expected from July 2017. If the CPI
Numbers for Industrial Workers remain stationary at 274 for the
remaining 4 months, the DA hike from July has fair chances to stick on
with 2% hike. So the Total DA will be 6% from 1.7.2017 with 2% hike.
