03 February 2012

As we expected the Labour Bureau, Government of India has announced the All India Consumer Price Index for Industrial workers (AICPI (IW)) for the month of December 2011.The AICPIN now stands at 197 for the month of December 2011. In the previous month (November-2011), AICPI (IW) was 199.
Now We all know the All India Consumer Price Index (AICPIN ) for Industrial workers for the months from January 2011 to December 2011.So now it is easy to everybody to calculate the expected Dearness Allowance from January 2012 according to the following formula.
Dearness Allowance = (Avg of AICPIN for the past 12 months – 115.76)*100/115.76
In the recent past, many were guessing the expected DA rate with effect from 1.1.2012, using AICPI (IW) for the months from Jan-2011 to Nov-2011,even though the AICPIN for Dec 2011 was not announced. Since, the AICPI (IW) for December 2011 is declared last week, there is no need for any wild guess regarding the expected DA Rate for central government employees from 1.1.2012 any more.

Thus, the expected DA rate with effect from 1.1.12 is estimated to be 65%, which witnesses an increase of 7% from the existing DA rate of 58%.

The official announcement by the Central Government for eligible DA rate for central government employees with effect from 1.1.2012 will be expected in the First week of March-2012

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