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7th Pay Commission DA Calculator as per gazette notification

7th Pay Commission DA Calculator based on gazette notification dated 25.07.2016 – Calculate DA from 1st July 2016 as per methods recommended by 7th Pay Commission based on All India Consumer Price Index (Industrial Workers) with Base 2001=100.

It is needless to say that Dearness Allowance would take significant part in the Salary of Central Government Employees and Pensioners considering the very long waiting period for every Pay Revision.

We have been following up the trend in Consumer Price Index (Industrial Workers) since 2008 and Estimating DA eligibility of Central Government Employees well before it is getting due twice a year.

7th Pay Commission DA CalculatorCheckout this GConnect DA Calculator for 6th CPC, a widely used tool for estimating DA of Central Government Employees.

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.

As per gazette notification issued by Govt on 25th July 2016 for implementation of 7th Pay Commission recommendations, DA related proposals have been accepted as such.

Extract of notification dated 25.07.2016 relating to 7th Pay Commission:

Sl. No. Recommendation  of  the  Seventh  Central
Pay Commission
Decision of the Government
1. Existing    formula    and    methodology    for
calculating Dearness Allowance to   continue
(Para 8.17.37 of the Report)
Accepted.    The    reference    base    for
calculation of Dearness Allowance after coming into force of the revised Pay structure  shall  undergo  change accordingly and will be linked to the average index as on 01.01.2016.

As per the decision of Govt given above it could been seen that 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.

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