As the prices go up day by day, cost of Petrol diesel etc. being increased time and again, the cost of living keeps going up towards the sky. The question lingering in the minds of government servants is, what will be the rate of Dearness Allowance with effect from 1st July 2011.
It is very early to predict the D.A. for July 2011 at this point of time, as we all know that D.A. is entirely based on arithmetical calculation on All India CPI (IW) (Base 2001=100). You can visit the following GConnect article to know how to calculate DA based on CPI(IW)
You can see that All India Consumer Price Indices for the entire 12 months prior to July-2011 are required to calculate the installment of D.A. payable from July-2011. The labour bureau has released the figure up to April-2011. After announcement of DA effective from Jan-2011 the index for Jan, Feb, March, and April have been announced as 188, 185, 185 and 186 respectively. We can predict that even if the consumer price index is constant for the months of May-2011and June-2011, it is sure that government employees will be getting a hike in DA to the tune of 7%. To estimate this increase you can use the GConnect DA Calculator.
Enter the assumed index for the months of May 2011 and June 2011 as 186 and 186, in the said gconnect calculator and click "calculate DA July-2011" button. You can see that estimated DA will be 58%. If you are so fond of further research, we can give you a tip that, the consumer price index ranging from 180 to 190 for the months of May-2011 and June-2011, will result in DA increase of 7% . If consumer price index for the months of May-2011 and June-2011 exceeds 190 then DA increase will be 8%. On the lower side, if the price index go below 180 in these months which is next to impossible, DA increase will be 6%.
Our readers may kindly keep in mind that it is only an assumption. We will be giving you the correct figure as soon as data for May-2011 and June-2011 are available.