DA from January 2017 will be 4% based on All India Consumer Price Index from

DA from January 2017 will be 4% based on All India Consumer Price Index from – Increase in Dearness Allowance for Central Government Emplyees and Pensioners with effect from January 2017 estimated to be 2%

GConnect.in had estimated that DA from January 2017 will be either 4% or 5% depending upon three scenarios viz., No increase in AICPI (IW) in December 2016, Decrease in AICPI (IW) in December 2016, and Increase in AICPI (IW) in December 2016.

Now that, consumer price index for December 2016 has been released by Govt.

Consequent on decrease of 2 point decrease in AICPI (IW) in December 2016, Increase in Dearness Allowance for Central Government Emplyees and Pensioners with effect from January 2017 estimated to be 2% as per following calculation.

Month	Actual AICPI-IW
Jan-2016	269
Feb-2016	267
Mar-2016	268
Apr-2016	271
May-2016	275
Jun-2016	277
Jul-2016	280
Aug-2016	278
Sep-2016	277
Oct-2016	278
Nov-2016	277
Dec-2016	275

DA with effect from 1st January 2017	= [ (269+267+268+271+275+277+280+278+277+278+277+275)/12]-(261.4)X100/261.4
	= 4 %