Expected DA January 2021
The DA calculation is carried out using the CPI-IW Index. The Dearness Allowance would certainly improve after the introduction of the current CPI-IW. For the base year 2016-100, the government is planning a new CPI-IW for industrial workers. Before June 2021, DA had stopped due to the COVID-19 pandemic. This DA hike is really necessary because of rising living costs. The impact of the new price index would have an effect only after a couple of months and will steadily raise the Dearness allowance, even for pensioners. Here we have some scenarios for a greater understanding central government employees.
Expected DA 2021 for Central Government Employees and Pensioners
Expected DA 2020
Check out with more scenarios
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%.