Dearness Allowance from January 2013 for Central Government Employees and Pensioners

Dearness Allowance from January 2013  for Central Government Employees and Pensioners

Dearness Allowance for Central Government employees will be estimated twice in a year based on the movements in the AICPI for Industrial workers. The Fifth Central Pay Commission had adopted the AICPI (IW) using the 1982 series for estimation of DA. The Government has developed a new series with base 2001, with effect from January 2006. It is possible to generate the back data series with base 2001, with the help of the stipulated linking factor of 4.63. The 2001 series has an extended coverage of 78 centers compared to the 70 centers in the 1982 series. The Commission, therefore, recommends that the AICPI (IW) with base 2001 may, henceforth, be used for the purpose of calculating DA till it gets revised. The base year should be revised as frequently as feasible. So with the base of 2001=100 the AICPI Number for Industrial Workers has been arrived every month.

So the past twelve months (starting from January 2012 to December 2012) AICPIN –IW average has to be worked out to find the Rate of Dearness Allowance to be paid from January 2013 to the Central government employees using the following formula

Dearness Allowance with effect from January 2013 = (Average of AICPI-IW for the last 12 months( from
Jan 2012 to Dec 2012) – 115.76)X100/115.76

AICPIN – IW  from January 2012 released by Labour Bureau ,Government  of  India

     We can assume with the above data that the AICPI Number for Industrial Workers for the remaining three months will be around 215 only, as there is no any abnormal fluctuation in AICPI for the last three months .

If it is so, the expected Dearness Allowance likely to be paid with effect from January 2013 will be 80%

READ : Expected Dearness Allowance from January 2013 vs AICPIN-IW