Monday, December 2, 2019

Expected DA January 2020 - Expected to increase by 4% from 17% to 21% and by 9% increase in 6th CPC DA

Expected DA January 2020 - Expected to increase by 4% from 17% to 21% and by 9% increase in 6th CPC DA


All India Consumer Price (Industrial Workers) Index Number [ CPI(IW) ] released by the Labor Bureau for October 2019. CPI-IW increased by 3 points to 325 (three hundred and twenty-five) for October 2019.

And with this increase in AICPIN, the Central Government Employees and Pensioners are expected to increase their Dearness Allowance Dearness Relief by 4 percent with effect from January 2020 in the 7th CPC Pay structure, thus the current 17 percent rate is projected to be 21 percent from January 2020.

On the other hand, employees who draw their salaries in the pre-revised 6th CPC pay structure will receive a 9% rise in the Dearness Allowance w.e.f. in January 2020 at 173%, which is currently 164%.

Also check: Expected DA January 2020 - Dearness Allowance calculation’s 3rd stage is over!

Detailed calculation of DA from January 2020 to 21% in 7th CPC & 173% in 6th CPC pay structure with AICPIN of October 2019 is provided in the table below. The calculation table shows 4 scenarios below:-

1st Scenario
Minimum aggregate decline of 4 points from November & December 2019 ACPIN will lower the January 2020 DA / DR forecasts to 20%.

2nd Scenario
In November & December 2019, ACPIN confirms DA / DR by 21 percent in January 2020

3rd Scenario
From a cumulative rise of at least 12 points through November & December 2019, ACPIN is increasing the probability of 6th CPC January 2020 DA to 174%

4th Scenario
A cumulative increase of at least 18 points from November & December 2019 will require ACPIN to increase DA / DR expectations from 21% to 22% from January 2020

Expected Dearness Allowance January 2020

Expectation Increase/ Decrease in Index Month Base Year 2001 = 100 Total of 12 Months Twelve Monthly Average % Increase Over 115.76 For 6 CPC DA % Increase Over 261.42 For 7 CPC DA 6CPC DA announced and expected 7CPC DA announced and expected
Dearness Allowance/ Relief from July-2019 164% 17%

3 Jul,19 319 3691 307.58 165.71% 17.66% 9 points increase in last 4 months ACPIN

1 Aug,19 320 3710 309.17 167.08% 18.26%

2 Sep,19 322 3731 310.92 168.59% 18.93%

3 Oct,19 325 3754 312.83 170.24% 19.67%
1st Scenario -2 Nov,19 323 3775 314.58 171.75% 20.34% 4 points decrease in next two months
-2 Dec,19 321 3795 316.25 173.19% 20.97%
Expected DA/DR from January-2020 173% 20%
2nd Scenario
Nov,19 325 3777 314.75 171.90% 20.40% No increase/ decrease in next 2 months

Dec,19 325 3801 316.75 173.63% 21.17%
Expected DA/DR from January-2020 173% 21%
3rd Scenario 6 Nov,19 331 3783 315.25 172.33% 20.59% 12 points increase in next two months
6 Dec,19 337 3819 318.25 174.92% 21.74%
Expected DA/DR from January-2020 174% 21%
4th Scenario 9 Nov,19 334 3786 315.50 172.55% 20.69% 18 points increase in next two months
9 Dec,19 343 3828 319.00 175.57% 22.03%
Expected DA/DR from January-2020 175% 22%
7th CPC Dearness Allowance / Dearness Relief w.e.f. January 2020, from 17% to 21%, is expected to increase by 4%.
6th CPC Dearness Allowance / Dearness Relief w.e.f. January 2020, from 164% to 173%, is expected to increase by 9%.

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