Popular News: Central Government Employees DA from July 2015 will be 119%
Two Point increase in CPI (IW) provides scope for 6% likely increase in DA payable to Central Government Employees and Pensioners from July 2015
Rewind Central Government Employees DA from July 2015 will be 119% – All India Consumer Price Index (Industrial Workers) for May 2015 released by Labour Bureau – Two Point increase in AIPCI(IW)
DA from July 2015 – As estimated in our article on 30th May 2015, Dearness Allowance for Central Government Employees with effect from July 2015 will be increased by 6% thanks to two point increase in All India CPI (IW) for May 2015.
Except CPI for June-2015, all data for calculation of Dearness Allowance from July 2015 are available now.
| Month | Actual AICPI-IW |
| Jul-2014 | 252 |
| Aug-2014 | 253 |
| Sep-2014 | 253 |
| Oct-2014 | 253 |
| Nov-2014 | 253 |
| Dec- 2014 | 253 |
| Jan-2015 | 254 |
| Feb-2015 | 253 |
| Mar-2015 | 254 |
| Apr-2015 | 256 |
| May-2015 | 258 |
| Jun-2015 | To be released |
We have to take the assumed value for CPI-IW only for June 2015. It is found that even for increase of 6 points in June 2015 from the existing CPI of 258, DA from July 2015 will be 119%. Only when CPI is increased to 265 from the existing level of 258, DA from July 2015 will be increased to 120%.
| DA from Jul 2015 | [(252+253+253+253+253+253+254+253+254+256+258+265)-115.76]*100/115.76 |
| = | 120% (7% increase in DA from July 2015) |
On the lower side, we found that only when Consumer Price Index fell down to 250 i.e when CPI (IW) is getting decreased by 8 Points, Central Government Employees DA from July 2015 will be fixed at 118%.
| DA from Jul 2015 | [(252+253+253+253+253+253+254+253+254+256+258+250)-115.76]*100/115.76 |
| = | 118 % (5% increase in DA from July 2015) |
From the above, it is clear that chances for decrease of 8 Points in CPI in a single month or increase of 7 points in same period are very remote. So, we can very well conclude that DA from July 2015 will be 119%.
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