Expected DA from January 2014 – DA should rise by 11% in January 2014

| January 1, 2014

Expected DA from January 2014 – DA should rise by 11% in January 2014 

Item Jan
13
Feb
13
Mar 13 Apr 13 May 13 Jun 13 July 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec       13 Avg
Index 221 223 224 226 228 231 235 237 238 241 243  245 (Exp.)  233.41

According to 6th Pay commission Effective dates of New Pay scale: Jan 2006

The All India Consumer Price index as per Dec 2005 is 115.77

DA Calculation: – {(Average of AICPIN of Last 12 Months-115.77)/115.7}*100

DA w.e.f from Jan-2013:- {(233.41-115.7)/115.7}*100 = 101.61%

Present rate of DA is 90%

Therefore increase in DA would be by 11% in case AICPIN rises to 245 Points in December-2013

 Detail is shown below:-

12 month average of AICPIN from January  2013  to December 2013 is  233.41 (see table).

Rise in index after 01.01.2006 = 233.41-115.77 =117.64

This means that you have to spend Rs 117.64 “more” to buy an item which you would have bought for Rs 115.77 in Jan 2006.

In other words you need to spend (117.64/115.77) x 100 = Rs 101.61 “more” than what would have bought with Rs 100 in Jan 2006.

That means, you are likely to spend Rs 201.61 for the same item which you bought with Rs 100 with your new pay scale in Jan 2006.

That is why you are likely to get 101% as Dearness Allowance of your basic effective January 2014.

Therefore increase in DA would be by 11% in case AICPIN rise by 2 Points in December-2013

Note:- If Increase is lesser DA hike in DA would be 10% i.e. DA will be 100 % w.e.f January-2014

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Category: AICPIN, DA

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