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Update: 19.07.2016 : How to Calculator 7th Pay Commission DA with effect from 1st January 2016?

Now that, 7th Pay Commission recommendations will take effect from 1st Jan 2016. Though 7th Pay Commission has recommended for using the same series of Consumer Price Index (Industrial Workers) with Base 2001=100, DA Calculation formula used for 6th CPC Pay will have to be revised as DA to the extent of 125% will be merged with Basic Pay on implementation of 7th Pay Commission recommendations.

In other words, DA on 7th CPC Pay with effect from 1st January 2016 will be reset to 0%.

New DA Calculation Formula based on CPI (IW) after 7th Pay Commission implementation will be as follows.

Dearness Allowance payable with effect from 7th CPC Basic Pay = (Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015)

New DA Calculator for calculating Dearness Allowance payable on 7th CPC Basic Pay:

Taking in to account, the revised DA Calculation Formula we have now come up with a new 7th Pay Commission DA Calculator.

How to Calculate DA from 1st January 2016?

We have all the actual Consumer Price Indices from January 2015 to December 2015 based on which DA from Jauary 2016 is calculated to be 0%

DA with effect from 1st January 2016 = [261.4]-(261.4)X100/261.4

DA from 1st July 2016:

We have already estimated DA from 1st July 2016 to be 6% or 7% on 6th CPC Pay.

Click here for estimation of DA from 1st July 2016 on 6cpc pay : DA from July 2016 set to increase by 6% or 7% for Pre Revised Pay (Pre-7th CPC Pay)

As far as DA from 1st July 2016 on 7th CPC pay is concerned, out of 12 CPI-IW required, actual CPI-IW for 11 months (from July 2015 to May 2016) are already available.

Month Actual AICPI-IW
July-2015 263
Aug-2015 264
Sep-2015 266
Oct-2015 269
Nov-2015 270
Dec-2015 269
Jan-2016 269
Feb-2016 267
Mar-2016 268
Apr-2016 271
May-2016 275
Jun-2016 yet to be released

It could be seen that for further increase in CPI-IW up to 5 points in June 2016 from 275, the CPI-IW recorded in May 2016, DA from july 2016 on 7th CPC Pay will be 2%. It will be 3% only if CPI-IW for June 2016 increases by 6 Points over the price index recorded in May 2016. As 6 Point increase in CPI-IW in one month may not be possible, it could safely be concluded that DA from July 2016 will be 2%

DA with effect from 1st July 2016 = [ (263+264+266+269+270+269+269+267+268+271+275+280)/12]-(261.4)X100/261.4
= 2 %

Use the DA Calculator for 7th Pay Commission Pay given below and calculate DA from July 2016 at ease.

How to Calculator 6th Pay Commission DA with effect from 1st January 2006 ?

How to calculate Dearness Allowance from the year 2006, twice a year using this average index? It is quite simple. Say, if you want to calculate Dearness Allowance with effect from Jan-06, get the average of monthly All India Consumer Price Index (IW) with the base year 2001=100 for the preceding 12 months and apply the same in the following formula

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

For your convenience, here is a small and smart tool that can calculate the dearness allowance with effect from January or July of a particular year in the future, once the AICPI(IW) for a particular month is published by the Government.

What you have to do is, go to Labour bureau website by clicking the link below, where Government officially post the All India consumer price Index every month. Just enter the said price index for the relevant month in the calculator below and enter required “calculate DA ..” button. For example if you want to estimate DA for the Jan-11 ensure that consumer price index from Jan-10 to Dec-10 is filled up in the calculator and click “Calculate DA Jan-11” button. The result field will give you the DA percentage calculated using the price index.

Check this Labour Bureau, Department Statistics, Government of India website to know about CPI-IW index published every month.

Check this Dearness Allowance Calculating tool

Recent Articles on Dearness Allowance:


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