The DA/DR payable for central government employees and pensioners respectively with effect from 01.01.2011 is 51%. The formal orders are expected soon.
In the mean time, CPI(IW) Index (the primary component for calculation of DA/DR) for January 2011 stood at 188. If this trend continues then DA/DR payable effective from 01 July 2011 could increase by 8% taking the total to 59%. If the index for the months between Feb to Jun 2011, pecks anywhere between 185 to 187 then DA/DR could go up by 7% taking the total to 58%.
The current forecast is: DA/DR could increase by 7 – 8% effective from 01 July 2011.