Friday, July 3, 2015

DA from July 2015 will be 119% – All India Consumer Price Index (Industrial Workers) for May 2015 released by Labour Bureau – Two Point increase in AIPCI(IW)

Dear Comrades,

DA Calculation
MonthActual AICPI-IW
Jul-2014252
Aug-2014253
Sep-2014253
Oct-2014253
Nov-2014253
Dec- 2014253
Jan-2015254
Feb-2015253
Mar-2015254
Apr-2015256
May-2015258
Jun-2015To be released
We have to take the assumed value for CPI-IW only for June 2015. It is found that even for increase of 6 points in June 2015 from the existing CPI of 258, DA from July 2015 will be 119%. Only when CPI is increased to 265 from the existing level of 258, DA from July 2015 will be increased to 120%.
DA from Jul 2015=[(252+253+253+253+253+253+254+253+254+256+258+265)-115.76]*100/115.76
=120% (7% increase in DA from July 2015)
On the lower side, we found that only when Consumer Price Index fell down to 250 i.e when CPI (IW) is getting decreased by 8 Points, Central Government Employees DA from July 2015 will be fixed at 118%.
DA from Jul 2015=[(252+253+253+253+253+253+254+253+254+256+258+250)-115.76]*100/115.76
=118 % (5% increase in DA from July 2015)
From the above, it is clear that chances for decrease of 8 Points in CPI in a single month or increase of 7 points in same period are very remote. So, we can very well conclude that DA from July 2015 will be 119%.
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