Expected DA from July 2021 almost be 31% subject to non-reduction in next month AICPIN

 Expected DA from July 2021 almost be 31% subject to non-reduction in next month AICPIN

The Labour Bureau has publishes the All India Consumer Price Index for Industrial Workers (AI CPI-IW) for the month of April 2021. The index increased by 0.5 points and stood at 120.1 (one hundred twenty and point one). On 1-month percentage change, it increased by 0.42 per cent with respect to previous month whereas there was a decline of 0.92 per cent between corresponding months a year ago. 

The maximum upward pressure in current index came from Food & Beverages group contributing 0.43 percentage points to the total change.

DA from July, 2021 almost be 31% if next month AICPIN will not be reduced.  

The increase is a minor one but giving considerable impact on expected Dearness Allowance, the CPI-IW upto the month of April 2021 is using for the calculation of the Dearness Allowance from July 2021 and two more figures are required for this. The government has frozen the DA till June 2021. Hence it is expected that the Hike DA will be available from the month of July 2021 or even earlier. Following table is showing that DA/DR from July, 2021 is expected to be 31%. If next months CPI (IW) will reduce to more than 0.2 points be less than 119.9 point the DA/DR from July, 2021 can be stop at 30%.  With this four months figure it is now clear that rate of DA from July, 2021 almost be 31%. 

Expected DA from July 2021 – Dearness Allowance almost be 31%: Table by staffnews.in

Expected DA from July, 2021 – Table by staffnews.in
Month	Base Year 2001 = 100	Base Year 2001 = 100	Total of 12 Months	Twelve monthly Average	% increase over 115.76 for 6CPC DA	% increase over 261.42 for 7CPC DA	7CPC DA announced or computed
Aug,19		320	3710	309.17	167.08%	18.26%
Sep,19		322	3731	310.92	168.59%	18.93%
Oct,19		325	3754	312.83	170.24%	19.67%
Nov,19		328	3780	315.00	172.11%	20.50%
Dec,19		330	3809	317.42	174.20%	21.42%	21%
Jan,20		330	3832	319.33	175.86%	22.15%
Feb,20		328	3853	321.08	177.37%	22.82%
Mar,20		326	3870	322.50	178.59%	23.36%
Apr,20		329	3887	323.92	179.82%	23.91%
May,20		330	3903	325.25	180.97%	24.42%
Jun,20		332	3919	326.58	182.12%	24.93%	24%
Jul,20		336	3936	328.00	183.34%	25.47%
Aug,20		338	3954	329.50	184.64%	26.04%
Sep,20	118.1	340	3972	331.00	185.94%	26.62%
Oct,20	119.5	344	3991	332.58	187.30%	27.22%
Nov,20	119.9	345	4008	334.00	188.53%	27.76%
Dec,20	118.8	342	4020	335.00	189.39%	28.15%	28%
Jan,21	118.2	340	4030	335.83	190.11%	28.47%
Feb,21	119.0	343	4045	337.08	191.19%	28.94%
Mar,21	119.6	344	4063	338.58	192.49%	29.52%
Apr,21	120.1	346	4080	340.00	193.71%	30.06%
May,21	120.1	346	4096	341.33	194.86%	30.57%
Jun,21	120.1	346	4110	342.50	195.87%	31.02%	31%
Jul,21	120.1	346	4120	343.33	196.59%	31.33%

 

Table of 7th Central Pay Commission Dearness Allowance  announced or computed

Month	CPI (IW) Base Year 2016 = 100	CPI (IW) Base Year 2001 = 100	7CPC DA announced or computed
Jan,16		269	0%
Jul,16		280	2%
Jan,17		274	4%
Jul,17		285	5%
Jan,18		288	7%
Jul,18		301	9%
Jan,19		307	12%
Jul,19		319	17%
Jan,20		330	21% [approved]
Jul,20		336	24% [confirm]
Jan,21	118.2	340	28% [confirm]
Jul,21	120.1	346	31% [expected]

****