Central employees and pensioners have reason to cheer as the next D.A. hike from 1st July'13 is going to be 10%.
Dearness Allowance = (Avg of AICPI for the past 12 months – 115.76)*100/115.76
D.A. is calculated on the average of AICPIN No.s for the last 12 months. We have got 11 of them published already and the last month (June'13) number is yet to come out. But 2/3 points increase or decrease is not going to matter this time. Whatever may the number for the last month (June'13), whether increases or decreases a couple of points, D.A. is going to be 90% of basic pay with effect from 1st July 2013.
As most of the state Governments do follow the central D.A. pattern, it may bring cheer to them also.