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DA hike to be 2% from January 2017.


04 Feb, 2017 8:11p.m.

Central government employees expect a 2 percent dearness allowance in the salary from January 2017.

Formula for calculating Dearness Allowance for Central government employees after 1.1.2006 is 

DA %= {(Average of AICPI(Base year 2001=100) for the past 12 months – 115.76)/115.76}*100

With 12 months AI-CPI IW for the last 12 months available, the calculation gives DA of 130 in the old pay scale. This is 12% increase when compared with January 2016. With the DA of zero as on January 2016 and considering the multiplication factor the DA works out to be 4.66%. However, the DA issued will rounded off to the lower number and hence it will be 4% from January 2017 i.e., a hike of 2%. 

The DA for the staff in the ^th CPC scale will be 12%, a hike of 6%.

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