Tuesday, December 10, 2019

DA from January 2020 for Central Government Employees and Pensioners estimated to be 21% (4% increase) if All India Consumer Price Index decreases by not more than 1 point in any of the remaining two months and not more than 2 in the other.

DA from January 2020 – Even as January 2020 is getting closer, Central Government Employees and Pensioners are entitled to an additional installment of dearness allowance.

DA from January 2020 is estimated in this article, after All India Consumer Price Index for 10 months declared already by Govt (January 2019 to October 2019). We have assumed AICPI for remaining two months (November 2019 and December 2019)

Trend of All India Consumer Index from January 2019:

After an unprecedented increase in the month July 2018 from 291 to 301, All India Consumer Price Index (Base 2001=100) remained at the same level till December 2018. However, from January 2019, the index increased steadily and it is now at the level of 325 as on October 2019.
Month wise All India Consumer Price Index recorded from January 2019 to October 2019, is as follows.
Checkout here for official All India Consumer Price Index Data
The above data (Actual index from January 2019 to October 2019) and assumed index for remaining two months at higher, equal and lower levels than the present consumer price index suggest following Four possibilities.

1. 3% increase in DA from January 2020, even if the assumed index for remaining two months reduced by 10 points in each month (total decrease of 20 points)
2. 4% increase in DA from January 2020, if the index stays at the present level (325) till Decembe 2019 i.e., No increase or decrease in the Index in the remaining two months.
3. 4% increase in DA from January 2020, if the index decreases by not more than 1 point in any of the remaining two months and not more than 2 points in the other month.
4. 5% increase in DA from January 2020, only if All India Consumer Price Index as on December 2019 increased to 340 at least from the present level of 325, with an intermediate increase of 12 points during November 2019.

Month Actual AICPI-IW
Jan-2019 307
Feb-2019 307
Mar-2019 309
Apr-2019 312
May-2019 314
Jun-2019 316
Jul-2019 319
Aug-2019 320
Sep-2019 322
Oct-2019 325
Nov-2019 Not released
Dec-2019 Not released