DA from 01-01-2014, Expected DA from 01-01-2014, Method of Calculation of Dearness Allowance and Expected DA Increase from 2014

Method of Calculation
DA is calculated using the following formulae:

Dearness Allowance =

(Avg of AICPI for the past 12 months – 115.76)*100 / 115.76
(Fractions are ignored)

The figure 115.76 signifies the average of price index from Jan 2005 to Dec 2005.

AICPI data for Jan 2013 to Dec 2013 as per Labour Bureau, Department Statistics, Government of India website is as follows:

Jan-2013		221
Feb-2013		223
Mar-2013		224
Apr-2013		226
May-2013		228
Jun-2013		231
Jul-2013		235
Aug-2013		237
Sep-2013		238
Oct-2013		241
Nov-2013		243
Dec-2013		239

  Total       2786 

Avg of AICPI for the past 12 months = 232.17

Applying formula
 we get (232.17-115.76) *100 / 115.76   =  
                                                    100.5615065653
                                                                                                                                        = 100.57

Previous DA i.e., DA from 01-07-2013 is 90

DA from 01-01-2014 = (100.57-90) = 10 % . (Fractions are to be ignored)