The DA rate w.e.f. 1.1.12 is 65% - increase 7% from the existing 58

Labour Bureau, Government of India has announced the All India Consumer Price Index for Industrial workers (AICPI (IW)) for the month of December 2011 as 197. In the previous month (November-2011), AICPI (IW) was 199.

A summary of All India Consumer Price Index for Industrial workers for the months from January 2011 to December 2011 is given below.

Month
Jan 11
Feb 11
Mar 11
Apr 11
May 11
Jun 11
Jul 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11
AICPI
188
185
185
186
187
189
193
194
197
198
199
197



We know that to estimate Dearness Allowance Rate applicable for central government employees, All India Consumer Price Index for Industrial workers (AICPI (IW)) for the previous 12 months are required. So, based on the AICPI (IW) for the months from Jan-2011 to Dec-2011 we can easily estimate the expected dearness allowance for the Central Government employees with effect from 1.1.2012 using the following formula.
Dearness Allowance = (Avg of AICPI for the past 12 months – 115.76)*100/115.76
In the recent past, many were guessing the applicable DA rate with effect from 1.1.2012, using AICPI (IW) for the months from Jan-2011 to Nov-2011 only as the same for Dec 2011 was not announced. Since, the AICPI (IW) for December 2011 is also out last week, there is no need for any wild guess regarding the DA Rate for central government employees from 1.1.2012 any more. The DA rate with effect from 1st January 2012 by entering the AICPI (IW) for the month of December 2011 which is 197, in the relevant field.
                                                      
Thus, the applicable DA rate with effect from 1.1.12 is estimated to be 65%, which an increase of 7% from the existing DA rate of 58%.

The official announcement by the Government for eligible DA rate for central government employees with effect from 1.1.2012 can be expected in the month of March-2012.

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