The AICPI for June 2016 is declared today. It is 277 points.
As all know, the Pension will be revised for CDA pensioners with effect from 1-1-2016 under Seventh CPC formula.
It is simple: Existing Basic Pension x 2.57 = The new Basic Pension
CDA:0 % from January 2016. It will increase to 2 % from July 2016.
Under Sixth CPC system the CDA would have increased by 7 percent.
See the impact on a pensioner with Exiting Basic Pension of Rs 10000:
Rs 10000 x 7/100 = Rs 700.00 ........New BP Rs 25700 x 2/100 = Rs 514.00.
A reduction of Rs 186 in the quantum of CDA!
At this rate, the benefit from Seventh CPC will disappear within 4 or 5 years.