DA from January 2017 will be 4% – Dearness Allowance of Central Government Employees -estimation

February 2, 2017 by GConnect Team

GConnect.in had estimated that DA from January 2017 will be either 4% or 5% depending upon three scenarios viz., No increase in AICPI (IW) in December 2016, Decrease in AICPI (IW) in December 2016, and Increase in AICPI (IW) in December 2016.

Click here to read: DA from January 2017 will be 4% or 5% – Dearness Allowance Estimation

Now that, consumer price index for December 2016 has been released by Govt.

Click here to read : All India Consumer Price Index for December 2016 released – 2 Point Decrease

Consequent on decrease of 2 point decrease in AICPI (IW) in December 2016, Increase in Dearness Allowance for Central Government Emplyees and Pensioners with effect from January 2017 estimated to be 4% as per following calculation.

Month	Actual AICPI-IW
Jan-2016	269
Feb-2016	267
Mar-2016	268
Apr-2016	271
May-2016	275
Jun-2016	277
Jul-2016	280
Aug-2016	278
Sep-2016	277
Oct-2016	278
Nov-2016	277
Dec-2016	275

DA with effect from 1st January 2017	= [ (269+267+268+271+275+277+280+278+277+278+277+275)/12]-(261.4)X100/261.4=[274.33-261.4]X100/261.4=4.95
	= 4 %

Checkout the new DA Calculator for Dearness Allowance after implementation of 7th Pay Commission report, to verify the above calculations.

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