Expected DA Hike in January 2021

 Expected DA Hike in January 2021

 

The Calculation of DA is done with the help of CPI-IW Index. In the execution of new CPI-IW, the Dearness Allowance will definitely go up. The government is going to prepare new CPI-IW for industrial workers with the base year 2016-100. Currently, DA had stopped due to COVID-19 pandemic till June 2021. Due to rising the cost of living, this DA hike is very important. The benefit of new price index will impact only after a few months and will bring increase gradually in Dearness allowance, including pensioners as well. Here we have come up with few scenarios for a better understanding of central government employees.

Scenario 1:

Let us assume AICPIN is increased by 1 Point then the expected DA will be 28% from January 2021.

AICPIN	Points	DA%
Aicpin for month of July 2020	336	25.48
Aicpin for month of August 2020	338	26.05
Aicpin for month of September 2020	340	26.63
Aicpin for month of October 2020	(expected) 341	27.14
Aicpin for month of November 2020	(expected) 342	27.58
Aicpin for month of December 2020	(expected) 343	28

Scenario 2:

Let us assume AICPIN is increased by 2 Points. Then such case the expected DA will be 28.19% from January 2021.

AICPIN	Points	DA%
Aicpin for month of July 2020	336	25.48
Aicpin for month of August 2020	338	26.05
Aicpin for month of September 2020	340	26.63
Aicpin for month of October 2020	(expected) 342	27.17
Aicpin for month of Noveber 2020	(expected) 344	27.68
Aicpin for month of December 2020	(expected) 346	28.19

Scenario 3:

Let us assume AICPIN is increased by 3 Points then the expected DA will be 28.38% from January 2021.

AICPIN	Points	DA%
Aicpin for month of July 2020	336	25.48
Aicpin for month of August 2020	338	26.05
Aicpin for month of September 2020	340	26.63
Aicpin for month of October 2020	(expected) 343	27.2
Aicpin for month of Noveber 2020	(expected) 346	27.77
Aicpin for month of December 2020	(expected) 349	28.38

However, AICPIN is increased by 1 or 2 or 3 points, the hike almost confirmed to 28% from the above scenarios of best cases. So central government employees can expect better change in January 2021 and definitely, it may reach 28%. In the worst cases, Upcoming months if the same AICPIN value follows or if it is decreased by 1 point, then DA hike will be confirmed to 27%.