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How to calculate Dearness Allowance

October 12, 2015 rajasinghmurugesan

How to calculate Dearness Allowance

Calculation of DA 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 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 formula

Dearness Allowance = (Avg of AICPIN for the past 12 months – 115.76)*100/115.76

(Fractions are ignored)

Example:To calculate Jan 2015 DA rate Price index average from Jan 2014 to Dec 2014 is taken.

Jan-14

237

101.71

Feb-14

238

102.79

Mar-14

239

103.87

Apr-14

242

105.02

May-14

244

106.17

Jun-14

246

107.25

Jul-14

252

108.48

Aug-14

253

109.63

Sep-14

253

110.71

Oct-14

253

111.57

Nov-14

253

112.29

Dec-14

253

113.3

Jan-15

254

114.52

Feb-15

253

115.6

Mar-15

254

116.68

Apr-15

256

117.69

May-15

258

118.7

Jun-15

261

119.78

Jul-15

263

120.57

Aug-15

264

121.36

Average

 

246.92

(November and December indexes are not actual s, based only on average for calculation purposes)

Dearness Allowance=(01.01.2014)=( 246.92-115.76)*100/115.76=113.29

DA (after ignoring fraction)=113%

So  DA Rate is 113%

Related posts:

  1. Rajyasabha Q&A about Static Dearness Allowance and Dearness Relief
  2. Cabinet approves – Dearness Allowance and Dearness Relief @ 4%
  3. Finmin Order: Revised rates of Dearness Allowance to the employees of CG & Central Autonomous Bodies as per 5th CPC from Jan 2022
  4. Rate of Dearness Allowance applicable w.e.f. 01.07.2021 & 01.01.2022 to Railway employees 6th CPC
  5. Finmin Order: Revised rates of Dearness Allowance to the employees of CG & Central Autonomous Bodies as per 6th CPC from Jan 2022
  6. Dearness Allowance to Armed Forces Officers and Personnel Below Officer Rank effective from Jan 2022
  7. Dearness Allowance to all Army Officers & Personnel w.e.f 01.01.2022
  8. Dearness Allowance to Railway employees effective from 01.07.2022
  9. Dearness Allowance for Workmen & Officer Employees – IBA Order

Filed Under: DA News For Central Government Employees News, DA orders October 12, 2015

Reader Interactions

Comments

  1. Amrit solanki says

    July 28, 2016 at 5:17 pm

    What % of D.A will be in January 2016 & July 2016 after fixation in 7 CPC

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