125 percent DA likely to be paid from January 2016

DA from January 2016 is Finalised by AICPIN for month of December 2015

LABOUR BUREAU, MINISTRY OF LABOUR & EMPLOYMENT has released the All India Consumer Price Index for Industrial employees for the Month of December 2015 on 29th January 2016. The All-India CPI-IW for December, 2015 decreased by 1 point and pegged at 269. However, this month AICPIN most eagerly expected by all the central government employees. Because this is the Final month of last 12 Months AICPIN to determine the Dearness Allowance to be paid from January 2016

S.NoMonthAICPIN
1January,2015254
2February,2015253
3March,2015254
4April,2015256
5May,2015258
6June,2015261
7July,2015263
8August,2015264
9September,2015266
10October,2015269
11November, 2015270
12December, 2015269

AICPIN average = 261.41666

As expected, the Percentage of DA from January 2016 will be raised to 125% from existing 119% with the increase of 6%

The AICPIN for the Month of December 2015 released by Labor bureau, put an end to all debates and assumptions over expected DA from January 2016. Last 12 Months AICPIN from January 2015 to December 2015 are required to calculate the rate of DA to be paid from January 2016. So now the exact rate of DA can be calculated after last 12 Months AICPIN are available.

Since the AICPIN for December 2015 came down by one point to 269 from the previous months 270 points, affected the DA rate reaching 126 %. It is expected that AICPIN for the Month of December will increase by 2 points and peg at 272 points. In that case, the average 12 months AICPIN will be 261.66. If this average applied in the formula to calculate the DA , the DA from January 2016 will be 126.04 with the increase of six percentage . Since December AICPIN decreased by 1 points the average AICPIN for the past 12 Months stands at 261.41 and this is the factor which restricted the DA rate with 5% increase.

DA = ( Avg of AICPIN for the past 12 months – 115.76)*100 /115.76

      = (261.41666 -115.76)*100/115.76

        =125.826%

According to the prescribed formula to calculate the percentage of DA, the exact rate of Dearness Allowance to paid from January 2016 is 125%.

The decision of enhancing the rate of DA from January 2016 will be declared after the approval Union cabinet in the first week of March 2016

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