The GOI, Labour bureau have notified the Consumer Price Index (CPI) for the month of September 2010 at 179. CPI for both July and August 2010 were 178. All of us are aware that CPI is the single most critical factor in determining the quantum of DA/ DR payable to Central Government Employees and Pensioners respectively. If the present level of CPI (179) continues for the next 3 months from Oct-Dec 2010, then the DA/DR payable from 01.01.2011 will increase by 6% taking the total to 51%. Even if the CPI reduces by 5 points average to 174 during Oct- Dec 2010, which is highly impossible, the DA/DR will increase by 5% taking the total to 50%.
This calculation is made based on the ongoing trend of CPI and therefore cannot be quoted for any purpose.