Expected Dearness allowance from July 2013.

   It is now confirmed that the rate of Dearness Allowance from July 2013 will be increased by 10% according to the AICPIN average for the past twelve months starting from July 2012 to June 2013.The Consumer Price Index Number for the month of June 2013 is released on 31st July 2013 by Labour Bureau, Ministry of Labour and Employment  in its Official site.

   All the central government employees will not be interested to know about the CPI numbers if it has no role in the calculation to obtain the rate of dearness allowance paid to central government employees. Since the dearness allowance is paid to central government employees to compensate the price rise, the AICPI numbers is the only factor to measure the increase in the prices of essential commodities. So the AICPIN for Industrial Workers is obviously inevitable part of the formula prescribed for calculating the rate of dearness allowance to be paid to central government employees.

   It is not only for central government employees, but all the state government employees have also been paid the same rate of dearness allowance. Once it is declared by the central government, all the state governments have no other go than to fallow it. That is why the AICPIN for Industrial workers has been watched keenly by all the central Government Employees and state government employees every month.

   To calculate the rate of Dearness Allowance from July 2013, we need AICPIN for Industrial Workers for the past twelve months

The AICPIN – IW for the past 12 months from July 2012 to June 2013

Month	Jul-2012	Aug-2012	Sep-2012	Oct-2012	Nov-2012	Dec-2012	Jan-2013	Feb-2013	Mar-2013	Apr-2013	May-2013	Jun-2013
AICPIN	212	214	215	217	218	219	221	223	224	226	228	231

   The average AICPIN for past 12 months is 220.67

The Formula to calculate the DA    
                                                                = ( Avg of AICPIN for the past 12 months – 115.76)*100 /115.76                                                                   
   The rate of DA from July 2013      =  (220.67-115.76)*100/115.76
                  
                                                                 = 90.618  (As per the instruction fraction if any to be ignored)

   So the rate of DA to be paid to central government employees from 1st July 2013 will be 90%. It is expected that formal announcement on this will be made by government after the decision taken by the cabinet committee on economic affairs in its meeting by the first week of September 2013 positively.

Source:http://www.gservants.com/2013/08/02/dearness-allowance-from-july-2013/