Expected DA upto 81% from January, 2013 on September, 2012 AICPI-IW index

Expected DA upto 81% from January, 2013 on September, 2012 AICPI-IW index

Expectation of future Dearness Allowance from January, 2013 on the basis of 2 points jump 

in CPI-IW for the month of August, 2012 and 1 point jump in September, 2012 giving 

expectation for DA  80% or more from January 2013. All India Consumer Price Index Number 

[http://labourbureau.nic.in/indtab.html] for Industrial Workers (CPI-IW) on base 2001=100 

for September, 2012 showing increase in 1 point and stood at 215 (Two hundred and fifteen).

Expectation-1
 If we expect only 1 point increase in this index for every month the Dearness Allowance 

for Central Government Employee will touch 80% in January, 2013.  In view of increased 

LPG & Diesel price etc. we expect more monthly increase in Index and similarly in future DA. 

 Please go through the following calculation:-

Expected Dearness Allowance DA for Jan, 2013 calculated as under:

Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76

Month	Base Year 2001 = 100	Total of 12 Months	Twelve monthly Average	% increase over 115.76 for   DA	DA announced or will be announced
Dec-11	197	2298	191.50	65.43%	65%
Jan-12	198	2308	192.33	66.15%
Feb-12	199	2322	193.50	67.16%	72%
Mar-12	201	2338	194.83	68.31%
Apr-12	205	2357	196.42	69.68%
May-12	206	2376	198.00	71.04%
Jun-12	208	2395	199.58	72.41%
Jul-12	212	2414	201.17	73.78%
Aug-12	214	2434	202.83	75.22%	80%
Sep-12	215	2452	204.33	76.51%
Oct-12	216	2470	205.83	77.81%
Nov-12	217	2488	207.33	79.11%
Dec-12	218	2509	209.08	80.62%
Jan-13	Expected DA from January, 2013

Expectation-2

 If we expect 2 point increase in this index for every month the Dearness Allowance 

for Central Government Employee will exceed 80% in January, 2013.  In view of increased 

LPG & Diesel price etc. we expect more monthly increase in Index and similarly in future DA.  

Please go through the following calculation:-

Expected Dearness Allowance DA for Jan, 2013 calculated as under:

Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76

Aug-12	214	2434	202.83	75.22%	81%
Sep-12	215	2452	204.33	76.51%
Oct-12	217	2471	205.92	77.88%
Nov-12	219	2491	207.58	79.32%
Dec-12	222	2516	209.67	81.12%
Jan-13	Expected DA from January, 2013

Hence, it is also clear that expectation of increase in DA from January, 2013 

will not cross 9%.