Central government employees expect a 2 percent dearness allowance in the salary from January 2017. As per a blog of central government employees,"In case All India Consumer Price Index(AICPIN) is less than 277 for Nov and Dec 2016, then Dearness Allowance from January 2017 will be 2 percent.
The employees feel that due to the impact of demonetisation, AICPIN Value may bevolatile in the coming months.The AICPIN for December 2016 was released bythe Labour Department on January 31 at 275.Though this is not the final figure because the Union are protesting against the DA %, added the blog.
The move is likely to bring relief to around 50 lakh employees working with the central government as well as 58 lakh more pensioners.
Provision of dearness allowance and dearness relief is made to the employees and pensioners so as to neutralise the effect of price rise on their salary and saving.