The GOI, Labour bureau have notified the Consumer Price Index (CPI) for the month of October and November 2010 at 181 and 182 respectively. If the same trend continues and even if it increases by 3 points to 185 for December 2010, the DA will increase by 6% only and the total DA/DR with effect from 01.01.2011 will hence be 51% as has been earlier predicted in this forum (refer Advance News).
Only thing to cheer is the fixed allowances such as Children Education Allowance, Conveyance Allowance for some category of staff will be 25% more as the D.A. will certainly cross the 50% mark. It may be remembered that D.A. linked allowances such as Transport Allowances will be unchanged.
This calculation is made based on the ongoing trend of CPI and therefore cannot be quoted for any purpose.