The Calculation of DA is done with the help of CPI-IW Index. In the execution of new CPI-IW, the Dearness Allowance will definitely go up. The government is going to prepare new CPI-IW for industrial workers with the base year 2016-100. Currently, DA had stopped due to COVID-19 pandemic till June 2021. Due to rising the cost of living, this DA hike is very important. The benefit of new price index will impact only after a few months and will bring increase gradually in Dearness allowance, including pensioners as well. Here we have come up with few scenarios for a better understanding of central government employees.
Scenario 1:
Let us assume AICPIN is increased by 1 Point then the expected DA will be 28% from January 2021.
|
AICPIN |
Points |
DA% |
|
Aicpin for month of July 2020 |
336 |
25.48 |
|
Aicpin for month of August 2020 |
338 |
26.05 |
|
Aicpin for month of September 2020 |
340 |
26.63 |
|
Aicpin for month of October 2020 |
(expected) 341 |
27.14 |
|
Aicpin for month of November 2020 |
(expected) 342 |
27.58 |
|
Aicpin for month of December 2020 |
(expected) 343 |
28 |
Scenario 2:
Let us assume AICPIN is increased by 2 Points. Then such case the expected DA will be 28.19% from January 2021.
|
|
Points |
DA% |
|
Aicpin for month of July 2020 |
336 |
25.48 |
|
Aicpin for month of August 2020 |
338 |
26.05 |
|
Aicpin for month of September 2020 |
340 |
26.63 |
|
Aicpin for month of October 2020 |
(expected) 342 |
27.17 |
|
Aicpin for month of Noveber 2020 |
(expected) 344 |
27.68 |
|
Aicpin for month of December 2020 |
(expected) 346 |
28.19 |
Scenario 3:
Let us assume AICPIN is increased by 3 Points then the expected DA will be 28.38% from January 2021.
|
AICPIN |
Points |
DA% |
|
Aicpin for month of July 2020 |
336 |
25.48 |
|
Aicpin for month of August 2020 |
338 |
26.05 |
|
Aicpin for month of September 2020 |
340 |
26.63 |
|
Aicpin for month of October 2020 |
(expected) 343 |
27.2 |
|
Aicpin for month of Noveber 2020 |
(expected) 346 |
27.77 |
|
Aicpin for month of December 2020 |
(expected) 349 |
28.38 |
However, AICPIN is increased by 1 or 2 or 3 points, the hike almost confirmed to 28% from the above scenarios of best cases. So central government employees can expect better change in January 2021 and definitely, it may reach 28%. In the worst cases, Upcoming months if the same AICPIN value follows or if it is decreased by 1 point, then DA hike will be confirmed to 27%.
