Saturday, April 20, 2013

Method of Calculation of Dearness Allowance and Expected DA Increase from 2013 Calculation of DA(Dearness Allowance) Rates

Method of Calculation of Dearness Allowance and Expected DA Increase from 2013
Calculation of DA(Dearness Allowance) Rates
  •     DA rates for Government employees are to be announced half yearly which will be applicable from first January and First July.
  •     On implementation of Sixth Pay Commission recommendations with effect from 01.01.2006 a new method of calculation of DA (dearness allowance) rates is adopted by Central (including Railways)and State Governments.
  •     DA rates are fixed on the basis of All India Consumer Price Index (AICPI) for industrial workers with Base year as 2001.


Method of Calculation

DA is calculated using the following formulae:
Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76
(Fractions are ignored)
The figure 115.76 signifies the average of price index from Jan 2005 to Dec 2005.
Example: To calculate Jan 2013 DA rate Price index average from Jan 2012 to Dec 2012 is taken.
AICPI data for Jan 2012 to Dec 2012 as per Labour Bureau, Department Statistics, Government of India website is as follows:
Jan-12198
Feb-12199
Mar-12201
Apr-12205
May-12206
Jun-12208
Jul-12212
Aug-12214
Sep-12215
Oct-12217
Nov-12218
Dec-12219
Total2512
Average209.33

Dearness allowance (01.01.2013)=( 209.33-115.76)*100/115.76=80.83
  • DA  (after ignoring fraction)=80 %
  • So Rate of DA expected from 01.01.2013 is 80 %
  • The rate of increase will be 8% (72% to 80%).
 Source: Indian railway employee

0 comments:

Post a Comment

Now Trending

Holidays to be observed in Central Government Offices during the year 2020

Holidays to be observed in Central Government Offices during the year 2020 CENTRAL GOVERNMENT HOLIDAY LISTS 2020 F.No.12/1/20...

Disclaimer:

All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. Our blog "Central Government Staff news" accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.

Links to other websites that have been included on this blog are provided for public convenience only.

The blog "Central Government Staff news" is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.

Any suggestions write to us
centralgovernmentnews@gmail.com