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DA from January 2019 – 3% increase confirmed based on calculations – Orders yet to be issued

DA from January 2019 – Increase in Dearness Allowance for Central Government Employees with effect from January 2019 is estimated at 3% on the basis of actual Consumer Price Index for 12 months for the period from January 2018 to December 2018

After All India Consumer Price Index  witnessed higher ever increase in July 2018 to the extent of 10 points, increase in Dearness Allowance for Central Government Employees and Pensioners from January 2019 was estimated to be not less than 3%.

Due to phenomenal increase in Consumer Price Index from 291 to 301 which is 10 points increase in July 2018 alone, there were chances for DA for Central Government Employees reaching 13% with effect from January 2019, with an increase of 4% in DA from the first half yearly 2019.

Historical data reveals that out of consumer price index for the period from 2005 to June 2018, highest monthly increase in the index was recorded in the month of July 2009 which was 7 Points.

CPI from August 2018 to November 2018 was almost steady as there was only one point increase during this period.

Now, after release of CPI for the month of December 2018, we have updated this DA Estimation.  All India Consumer Price Index has decreased by one point in this month and present CPI is 301.

DA from January 2019

As we have CPI for all the months needed for the calculation of DA from January 2019 for central government employees and pensioners it is almost confirmed that Dearness Allowance for Central Government Employees and Pensioners for the month from January 2019 will be 12%.

Actual Consumer Price Index from January 2018 to December 2018 is as follows.

Month Actual AICPI-IW
Jan-2018 288
Feb-2018 288
Mar-2018 287
Apr-2018 288
May-2018 289
Jun-2018 291
Jul-2018 301
Aug-2018 301
Sep-2018 301
Oct-2018 302
Nov-2018 302
Dec-2018 301

Applying these Consumer Price Index Numbers in the standard formula for calculating Dearness Allowance for Central Government Employees and pensioners, DA from January 2019 is determined as follows.

DA with effect from 1st January 2019 = [ (288+288+287+288+289+291+301+301+301+302+302+301)/12]-(261.4)X100/261.4
= 12 % (increase of 3% from the DA of 9% w.e.f July 2018)

 

The following DA Calculator will be handy to check the above DA Calculation.

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