Eligible DA from July 2015 is 119% – All India Consumer Price Index for June 2015 released

Eligible DA from July 2015 is 119% – All India Consumer Price Index for June 2015 released

Central Government Employees DA with effect from January 2015 is 113%. On the basis of AICPI (IW), DA from July 2015 is now confirmed to be 119%. DA from July 2015 will be announced by Govt in the month of September 2015 or October 2015 normally.

Eligible DA from July 2015 is 119% – All India Consumer Price Index for June 2015 released by Labour Bureau – 3 Point increase in AICPI (IW) from 258 to 261.

Labour Bureau, Ministry of Labour and Employment has released All India Consumer Price Index (Industrial Workers) for the month of June 2015. As per the press release dated 31.07.2015, AICPI(IW) for June 2015 is 261, an increase of 3 points from the consumer price index of 258 for the month of May 2015. ‘

Consequently, eligible DA from July 2015 for Central Government Employees is now confirmed to be 119% which will be an increase of 6% from the existing DA of 113%

All India Consumer Price Indices for the months from July2014 to June 2015, which are required to determine Dearness Allowance entitled to Central Government Employees including Railway Employees, Defence Personnel and Pensioners are follows:

Month	Actual AICPI-IW
Jul-2014	252
Aug-2014	253
Sep-2014	253
Oct-2014	253
Nov-2014	253
Dec- 2014	253
Jan-2015	254
Feb-2015	253
Mar-2015	254
Apr-2015	256
May-2015	258
Jun-2015	261

 

DA from Jul 2015=	[(252+253+253+253+253+253+254+253+254+256+258+261)-115.76]*100/115.76
=	119% (6% increase in DA from July 2015)

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-12	198
Feb-12	199
Mar-12	201
Apr-12	205
May-12	206
Jun-12	208
Jul-12	212
Aug-12	214
Sep-12	215
Oct-12	217
Nov-12	218
Dec-12	219
Total	2512
Average	209.33

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

How to calculate Dearness Allowance?

How to calculate Dearness Allowance?

New DA Calculation after Gazzetted Notification

Government has notified the revised DA calculation based on the AICPI 2001 series published by labourbureau.nic.in

REVISED DEARNESS ALLOWANCE CALCULATION BASED ON GAZZETTED NOTIFICATION OF SIXTH PAY COMMISSION

All India Consumer Price Index (General) for Industrial Workers (Base 1982=100) Year Jan Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average(Rounded) 2005, respectively 526, 525, 525, 529, 527, 529, 538, 540, 542, 548, 553, 550, 536* Note:* 536 is taken as a base as on 01.01.2006 for revised DA calculation.

It comes to 115.76 when converting in 2001 series after dividing by a linking factor of 4.63 in 1982 series, ( 536/4.63 = 115.76). this figure is given in Gazzeted notification All India Consumer Price Index (General) for Industrial Workers (Base 2001=100) published by labourbureau.nic.in.

Year Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average(Rounded) 2006, 119, 119, 119, 120, 121, 123, 124, 124 125, 127, 127, 127, 123 2007, 127, 128, 127, 128, 129, 130, 132, 133, 133, 134, 134, 134, 130.75 2008, 134, 135, 137, 138, 139, 140, 143

Note : Read last three column of table given below as1 = 12 monthly average of

AICPI (IW) base year 2001=100 2 = %

DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.763 = % DA after rounded off Date 1.7.2006, 116, 116, 117, 118, 119, 119, 119, 119, 119, 120, 121, 123, 118.95, 2.76, 2% 1.1.2007, 119, 119, 119, 120, 121, 123, 124, 124, 125, 127, 127, 127, 123, 6.25, 6% 1.7.2007, 124, 124, 125, 127, 127, 127, 127, 128, 127, 128, 129, 130, 126.91, 9.63, 9% 1.1.2008, 127, 128, 127, 128, 129, 130, 132, 133, 133, 134, 134, 134, 130.75, 12.94, 12% 1.7.2008, 132 , 133, 133, 134, 134, 134, 134, 135, 137, 138, 139, 140, 135.25, 16.83, 16%

DA calculation as on 01.07.2006 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2005 to 30.06.06 = 118.95% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (118.95 - 115.76)*100/115.76 = 2.76 %% DA after rounded off = 2 % effective from 01.07.2006

DA calculation as on 01.01.2007 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.01.2006 to 31.12.06 = 123% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (123 - 115.76)*100/115.76 = 6.25 %% DA after rounded off = 6 % effective from 01.01.2007

DA calculation as on 01.07.2007 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2006 to 30.06.07 = 126.91% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (126.91 - 115.76)*100/115.76 = 9.63 %% DA after rounded off = 9 % effective from 01.07.2007

DA calculation as on 01.01.2008 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.01.2007 to 31.12.07 = 131% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (130.75 - 115.76)*100/115.76 = 12.94 %% DA after rounded off = 12 % effective from 01.01.2008

DA calculation as on 01.07.2007 :12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2007 to 30.06.08 = 135.25% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (126.91 - 115.76)*100/115.76 = 16.83 %% DA after rounded off = 16 % effective from 01.07.2008

Date for %DAapplicable DA As on1.7.2006 = 2 %1.1.2007 = 6%1.7.2007 = 9%1.1.2008 = 12%1.7.2008 = 16%

Notes : 1.AICPI for industrial worker Base 2001 is available from Jan. 2006 onward only, therefore as recommended by pay commission back data from July 2005 to Dec 2005 is generated on 2001 series by carryingout back calculation on 1982 series ( by dividing linking factor 4.63) for calculating the 12 monthly average from July 2005 to June 2006 ( for applicable DA as on 01.07.2006