Jul 3, 2017

Expected DA - 1% increase in Dearness Allowance with effect from 1st July 2017

DA from July 2017 – Govt has recently released All India Consumer Price Index (Industrial Workers) for the month of May 2017 (AICPI – IW)
As of now, Consumer Price Index for 11 months from July 2016 to May 2017 which will be used to determine DA from July 2017 for Central Government Employees and Pensioners is available. The index for June 2017 is awaited.

MonthActual AICPI-IW
Jul-2016280
Aug-2016278
Sep-2016277
Oct-2016278
Nov-2016277
Dec-2016275
Jan-2017274
Feb-2017274
Mar-2017275
Apr-2017277
May-2017278
Jun-2017Yet to be released
On the basis of actual consumer index for 11 months and one projected CPI for Jun 2017, it is estimated that DA from July 2017 will be 5%, viz., 1% increase in DA from July 2017, if Consumer Price Index for the month of June 2017 is between 251 to 282.
If Consumer Price Index touches 283 in the month of June 2017, then Central Government Employees and Pensioners will be entitled to DA of 6% from July 2017. However, CPI for May 2017 is at 278. Hence, a sudden jump of more than 5 points from 278 to 283 in the month of June 2017 is not likely.
At the same time, CPI falling below 251 from 278 in the month of June 2017 is almost not possible.
On this assumption, DA from July 2017 for Central Government Employees and Pensioners is estimated to be 5%.
- GCONECT