Press Information Bureau (PIB) has announced the All India Consumer Price Index for Industrial Workers (CPI-IW) on base 2001=100 for the month of December, 2010 increased by 3 points and stood at 185.
As a result, we can calculate the Dearness Allowance applicable to Central Government Employees with effect from Jan-2011.
How to calculate DA with effect from Jan-2011?
DA w.e.f Jan-2011=(Avg of AICPI from Jan 10 to Dec 10 – 115.76)*100/115.76
The following GConnect online DA estimating tool would calculate DA for you. You could find that the CPI index from Jan-2010 to Nov-2010 has been already filled up against relevant month. Now, you have to enter the CPI index of 185 in the field for the month of Dec-2010 and click the button "Calculate DA Jan-11". That's it. The result field gives you the DA rate of 51% that is applicable with effect from January 2011.
So, we can expect that the existing Dearness Allowance Rate of 45% will increase to 51% from 1st January 2011, which is an increase of 6%.