Expected DA From July 2014-Possibility Of Increase Of DA By 6%

Expected DA From July 2014-Possibility Of Increase Of DA By 6%

Dearness Allowance is given twice a year in the months of January and July. The benefit of this allowance is being enjoyed by both central and state government employees.

Every time when the DA is given, there is an increasing curiosity among central and state government employees to know in advance the DA that they will get the next time. As everyone knows well, DA is calculated based on the increase of the price of the essential commodities. Hence, the expectation of the central and state government employees about the DA that they are going to get in the month of July 2014 is quite reasonable.

AICPIN and DA

To calculate the DA for July, we need the value of AICPIN. As of now, the value of AICPIN for only 3 months has come out. The table below shows the approximate AICPIN value for the next three months and is calculated based on three different AICPIN values. According to this calculation, the chance for getting a 6% DA seems more probable but DA depends on the AICPIN value of the next three months.

The first table is calculated based on the AICPIN value of 239.

YEAR/MONTH	B.Y.2001=100	TOTAL OF 12 MONTH	12 MONTH AVERAGE	%INCREASE OVER 115.763	APP.DA	DA%
JAN-14	237	2802	233.5	117.74	101.7
FEB-14	238	2817	234.75	118.99	102.78
MAR-14	239	2832	236	120.24	103.86
APRIL-14	239(EXPECTED)	2845	237.08	121.32	104.8
MAY-14	239(EXPECTED)	2856	238	122.24	105.59
JUN-14	239(EXPECTED)	2864	238.67	122.9	106.17	106

From the above table, we can see that if the AICPIN value continues as 239, the DA may rise to 6%. Moreover, if the AICPIN value for the next two months remains as 238, the DA may rise to 6%. If AICPIN value stays as 238 for the next three months, we may get a 5% DA. But chances for AICPIN value to remain at 238 are lesser.

In the second table, you can see that if the AICPIN value of 240 if increased by 1 point gives a DA of 6%. If the AICPIN value for the next two months continues to be 238, a DA value of 6% will not come down.

YEAR/MONTH	B.Y.2001=100	TOTAL OF 12 MONTH	12 MONTH AVERAGE	%INCREASE OVER 115.763	APP.DA	DA%
JAN-14	237	2802	233.5	117.74	101.7
FEB-14	238	2817	234.75	118.99	102.78
MAR-14	239	2832	236	120.24	103.86
APRIL-14	240(EXPECTED)	2846	237.17	121.4	104.87
MAY-14	240(EXPECTED)	2858	238.17	122.4	105.74
JUN-14	240(EXPECTED)	2867	238.92	123.95	106.38	106

Even though the third table is calculated on an AICPIN value of 241, the DA rise is only 6%.

YEAR/MONTH	B.Y.2001=100	TOTAL OF 12 MONTH	12 MONTH AVERAGE	%INCREASE OVER 115.763	APP.DA	DA%
JAN-14	237	2802	233.5	117.74	101.7
FEB-14	238	2817	234.75	118.99	102.78
MAR-14	239	2832	236	120.24	103.86
APRIL-14	241(EXPECTED)	2847	237.25	121.49	104.87
MAY-14	241(EXPECTED)	2860	238.33	122.57	105.74
JUN-14	241(EXPECTED)	2870	239.17	123.4	106.6	106

The third table above shows that the 6% DA may rise. So expected da from july 2014 is 6 percentage

The DA that we will get in July 2014 will be more than the basic pay.

[textmarker color=”C24000″]Expected DA Calculation Sheet[/textmarker]