Expected hike in dearness allowance - 9% to 10% from July 2013

It is really unfortunate that at the time of discussing about the rate of dearness allowance from July 2013, expectation on dearness allowance from January 2013 is not fulfilled even now. Actually the additional amount, that the central government employees may get, on account of hike in dearness allowance from January 2013 apart from their regular pay is not at all a matter for the people those who are dealing with lakhs and crores. But it is indeed a matter for 50 lakh central government employees and pensioners, In order to deal with abnormal price rise; they have no other option than expecting dearness allowance to be increased. It is expected that the central government has reached the saturation point and it has no other go than to announce it as soon as possible. Let us hope it will be announced very shortly.

At this juncture it is very hard to move on to the topic of dearness allowance from July 2013. But there is a saying.. “Sometimes It is very hard to move on, once you move on, you will realize it was the best decision you ever made” . So Let us move on to the topic of expected dearness allowance from July 2013.

As we all know that the Average AICPIN for Industrial Workers starting from the month of July 2012 to June 2013 determines the rate of dearness allowance to increased from 1st July 2013.

Let us see the All India consumer price Index numbers published by Labour Bureau website till date from July 2012

Month    AICPIN-IW
July 2012    212
August 2012    214
September 2012    215
October 2012    217
November 2012    218
December 2012    219
January 2013    221
February 2013    223
March 2013     to be pulished
April 2013    to be published
May 2013    to be published
June 2013    to be published

The AICPIN for the last four months are yet to be published. According to the 8 months average of AICPIN , if the same trend continues up to June 2013, the dearness allowance to be increased from 1st July 2013 will be around 9% to 10%. So it is estimated from the above AICPIN position that expected increase in dearness allowance will be around 9% to 10%