Expected DA hike for Bankers from May 2018

Consumer Price Index (CPI) is announced by Labour Bureau for month of February 2018 which is 287 (decreased by 1 point from January CPI which was 288).

Expecting CPI data to increase by 1 point for month of march 2018 i.e, 288, what will be the expected DA increase – here is the calculation.

Consumer Price Index (CPI) Numbers for January 2018 – 288 (published)

Consumer Price Index (CPI) Numbers for February 2018 – 287 (published)

Consumer Price Index (CPI) Numbers for March 2018 – 289 (expected)

    Multiply it by conversion factor (4.63 x 4.93),

·  CPI for Jan 2018 = (288×4.63×4.93) = 6573.85

·  CPI for Feb 2018 = (287×4.63×4.93) = 6551.03

·  CPI for March 2018 = (289×4.63×4.93) = 6596.68

·  Average CPI = (6573.85+6551.03+6596.68)/3 = 6573.85

·  Deducting 4440 slabs which are merged in basic pay as per 10th bipartite settlement = (6573.85-4440) = 2133.85

·  Divide 2126.24 by 4 to calculated DA slabs for quarter = (2133.85/4) = 533   on which 0.10 percent DA is payable.

Expected Increase in DA Slabs = 533-527 = 6 slabs

So expected DA increase for month of May, June and July 2018 will be 0.60 percent

So DA for bankers from May 2018, June 2018 and July 2018 will be 53.30%.