Additional Dearness
Allowance/Dearness Relief will be increased by 7% from July, 2014.
The Consumer Price Index (IW), which was on a huge decline in the
months of November and December 2013. The number stood at 239 in
December 2013, but fell two points to 237 in January 2014. In the
following days, it rose steadily by a point each month. The
AICPIN number rose by 2 points to now stand at 244 in the month of June-14. As a result there is
a high probability that the next Additional Dearness Allowance could be
a substantial one.
First
is the month. Then comes the CPI (IW) Base Year 2001=100 and the
relevant data. In the next column, you have the sum total of all the 12
months, i.e., the total of the declared AIPCIN numbers for the past 12
months. Next comes the division of the sum total by 12.
The
next step is the most crucial one. You will have to find out by how
much it exceeds 115.76. You will have to calculate the excess as
percentage of 115.76.
(12 Monthly
Average)- 115.76
---------------- X 100 = % increase in prices (ignore decimals)
115.76
At
the most, one can expect an increase of 7%. That too is not for sure.
All that depends on the soon to be announced AICPIN points for balance
months. Expectation of DA/DR for July, 2014 may understood with table
is given below:
