4% DA hike to Central Government employees is confirmed as from 1 January 2020
The Consumer Price Index for Industrial Workers, according to a press release issued by the Labor Bureau, increased by 2 points and pegged at 330. Now there is an average of 12 months of AICPIN available for calculating the DA from January 2020.
As per the approved Dearness Allowance rate calculation formula, the DA will be increased by 4 per cent from January 1st, 2020.For impact from 1.1.2020, the DA rate will increase from the current 17 per cent to 21 per cent.
As per the approved Dearness Allowance rate calculation formula, the DA will be increased by 4 per cent from January 1st, 2020.For impact from 1.1.2020, the DA rate will increase from the current 17 per cent to 21 per cent.
For this DA hike the Central Government must grant its approval. In the second week of March 2020, the Union cabinet must approve the plan to increase DA from 1 January 2020. The Ministry of Finance will subsequently issue an order for payment DA to central government employees and DR to pensioners with effect from 1.1.2020
AICPIN for December 2019 – Press Release
How to calculate Dearness Allowance?
Formula to calculate Dearness Allowance for Central Government Employees after 1.1.2016
DA % = (Average of AICPIN for the past 12 months – 261.4) * 100 / 261.4
Avg AICPIN=
(307+307+309+312+314+316+319+320+322+325+328+330) / 12 = 317.42
DA% = ( 317.42-261.4 ) *100/261.4 = 21.42%
Hence increase DA% would be 4% as now it's 17%.
