Expected DA From January 2018, Hike 2% to 4%
January 2018 DA hike likely to spring a surprise it seems when the AICPIN for July was released. The AICPIN for July 2017 increased to 5 points and pegged at 285.
The Total increase in 2015 is 15 Points. The Dearness Allowance Increase in that particular year was 6% hike from July 2015 and it took the rate of Dearness Allowance to 119% from July 2015. And again 6% hike from January 2016 increased the DA to 125 %. So the impact of total 15 Points increase in AICPIN for the year 2015 resulted total 12% hike in DA for the year 2015.
So far from the January 2017 Consumer Price Index Number 274, the AICPIN points increased 11 Points up to July 2017. So it can be expected that the Expected DA from January 2018 will spring a surprise in respect of hike in Dearness Allowance.
After the implementation of 7th CPC Recommendation, two instalments of DA have been declared. 2% from July 2016 and 2% from January 2017. Total 4% is paid as of now for Central Government Employees with total 6 points increase in AICPIN for the year 2016. The DA due for 1st July 2017 is 1% hike and it will be declared any time in this Month. But the July AICPIN is increased the expectation of Central Government Employees over the expected DA from January 2018.
It seems that 1-point increase in AICPIN every month from August 2017 to December 2017 will take the January DA to 7% with 2% hike. But 2point increase for each month will give 3% hike in the DA from January 2018 and the Total DA will be 8%