Dearness Allowance = (Avg of AICPI for the past 12 months – 115.76)*100/115.76
Out of the last 12 months data only the data for June’14 is yet to be published. The consumer price index was 237, 238, 239, 242, 244 in the last five months. Considering the upward trend, it can be predicted that the June figure may stand in the range of 244 more or less. The D.A. can come down to 6% only if the figure decreases by two points for June’14 which seems unlikely at this point of time.
So, let’s wait for 31st July when the figure of June 2014 to be released. Only then we can calculate it accurately.