For update as on 30.12.2016 please click the following link
What will be the DA for bankers from February 2017?
CPI(IW) or Consumer Price Index for the month of October 2016 is released, by the ministry of Labour and Employment. The index increased by 1 point and stood at 278. Even though the index has increased by one point, the DA or Dearness Allowance for bankers for the months of February, March and April 2017 will decrease by two slabs.
The decrease is mainly due to the higher index numbers for the previous quarter.
As of now assuming that the index is stagnant for all the three months, Dearness Aallowance from February 2017 will be decreased by two slabs or 0.2%.
We assume that the index will fall further and by all probabilities the expect an steep fall in index in the coming months and accordingly a fall in DA slabs.
We forecast a decrease of nearly 16 slabs of DA form February 2017.
Do you want to know history for the past 10 years please click the following Link
Very interesting article about how the Dearness Allowance came into existence please do read the article
We can expect that we have entered into a low inflation era where in from now we will witness gradual decrease in inflation. All of the bankers should know that the Dearness Allowance is directly related to the inflation and from now on wards don’t expect any 25 to 30 slabs increase in Dearness Allowances in future.
We will be updating you on 30th of December once he Data for the month of November is released.