As DA from January 2016 will be 125%, No Dearness Allowance related correction will be needed in 7th Pay Commission Multiplication Factor of 2.57
Estimation of DA from January 2016 – The much awaited All India Consumer Price Index (Industrial Workers) for the month of December 2015 has been released by Govt. It has decreased by one point from 269 from 270 which was recorded in the month of November 2015.Readers must be remembering what we had discussed earlier this month while estimating Dearness Allowance of Central Government Employees and Pensioners with effect from January 2016. Checkout the following link to to read the same.
Expected DA from January 2016 – Two Point increase in Dec 2015 may change 7th Pay Commission fitment formula
We had reported that If CPI-IW for December reaches 272 then 7th Pay Commission multiplication factor will have to be revised
to 2.58. On the contrary, CPI-IW has headed south by one point in
December 2015. This confirms that DA from January 2016 will be 125%
which was estimated by 7th Pay Commission.Consequently, no correction or change in 7th pay commission fitment formula / multiplication factor of 2.57, will be needed now with respect to DA factor is concerned.
This makes the job of Empowered Committee which has been set up to process 7th Pay Commission report, easier now, as they need not correct / revise the 7th Pay Commission’s new pay matrix and fitment formula with respect to DA from January 2016.
Consumer Price Index from January 2015 to November 2015
| Month | Actual AICPI-IW |
| Jan-2015 | 254 |
| Feb-2015 | 253 |
| Mar-2015 | 254 |
| Apr-2015 | 256 |
| May-2015 | 258 |
| Jun-2015 | 261 |
| July-2015 | 263 |
| Aug-2015 | 264 |
| Sep-2015 | 266 |
| Oct-2015 | 269 |
| Nov-2015 | 270 |
| Dec-2015 | 269 |
Estimated DA from January 2016
| DA from Jan 2016= | [(254+253+254+256+258+261+263+264+266+269+270+269)-115.76]*100/115.76 |
| = | 125 % (6% increase in DA from Jan 2016) |
