The DA from January 2017

Expected DA from January 2017 is a myth until the Dearness Allowance is announced for July 2016. There is unprecedented delay in announcing DA form July 2016. It is the first instalment of Dearness Allowance in the 7th CPC regime.

Hence there is lot of speculations around the calculation of Dearness Allowance and method of arriving DA formula for 7th CPC. The linking factor will be determined when government decides to change the base year for Calculating consumer price index. It is now under the consideration of the Government of India. Until then this existing base year for CPI -IW will be taken for calculating DA in 7th CPC.

But the average CPI index for the year 2015 will be taken as base index to calculate the Dearness Allowance for 7th CPC, because the 125% DA in pre revised pay was neutralised to arrive the revised 7th CPC pay scale from 1/1/2016. Though the Dearness Allowance calculation formula remain unchanged, the base average CPI index need to be replaced by the AICPIN average of 2015.Accordingly the DA would have been calculated.

But The NCJCM has raised a demand that the practice of ignoring the fractions of percentage of Dearness Allowance need to be taken into account. The Actual Dearness Allowance arrived is 125.75%. Since the 125% is merged with the revised pay, remaining 0.75 to be offset in the value of Average CPI Index of 2015 to arrive the exact rate of 125% Dearness Allowance. So the average AICPIN for 2015 to be revised from 261.33 to 260.46. But the Government view in this demand is not yet disclosed.

So as per the existing value the Dearness Allowance from July 2016 is 2% . The expected DA from January 2017 will be known exactly after all the AICPIN from January 2016 to December 2016 released. However these eight Months AICPIN released so far suggests that the Dearness Allowance from January 2016 will have hike from 5% to 6% .