Estimate Dearness Allowance using ACPI-IW

Estimate Dearness Allowance using ACPI-IW

dearness allowance,DA calculator, dearness allowance, central government employees, cg employees da, how to calculate da, consumer price index, AICPI-IW, all india consumer price indexNeedless to say, dearness allowance is an important component of our salary in this inflationary trend.

It is based on monthly All India Consumer Price Index for Industrial Workers (Base year 2001=100) announced by the Government from time to time. Check this Labour Bureau, Department Statistics, Government of India website to know about CPI-IW index published every month.

After implementation of sixth pay commission report, Government ordered that the dearness allowance has to be calculated based on CPI-IW index with the base year 2001=100. So, DA with effect from the period 1.1.2006, has to be calculated using average Price CPI-IW index of 536 for 2005 (base 1982=100) adjusted to the base year 2001=100 by dividing the same with the Linking Factor between 1982 and 2001 Series which is 4.63.

As a result, the average consumer price index (Industrial workers) for 12 months in 2005 (base 2001=100) was worked out to 115.76. How to calculate Dearness Allowance from the year 2006, twice a year using this average index? It’s 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

[DDET Click here to know about the formula for calculating Dearness Allowance using AICPI-IW]

Dearness Allowance = (Avg of AICPI for the past 12 months – 115.76)*100/115.76 For example if you want to calculate DA with effect from 1.1.2006, get the average of AICPI for the period from 1.1.2005 to 31.12.2005, which is 115.76 and apply the same in the formula as follows DA with effect from 1.1.2006 = (115.76-115.76)*100/115.76 = 0% DA w.e.f 1.07.2006 = (118.95-115.76)*100/115.76 = 2%

[/DDET]

Like wise DA with effect from 1.1.2007, 1.7.2007, 1.1.2008, 1.7.2008, 1.1.2009, and 1.7.2009 were calculated as 6%, 9%, 12%, 16%, 22%, and 27% respectively.

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) till the previous month is published by the Government and you fill up the same in this tool.

This AICPI (IW) (base year 2001=100) for each month would be available in the Labour Bureau, Department Statistics, Government of India website and would be updated each month. Any way we will update the DA calculator tool with the latest AICPI (IW) for each month once the same is published Government.

Click the following link to estimate the future dearness allowances.

Dearness Allowance Calculating tool
 

67 Comments

  1. It is seen that the Linking Factor between 1982 and 2001 Series for the All-India is 4.63 has remain unchanged these past 10 years .Can Gconnect Team highlight as to how this linking factor is stable while the other fields are mostly in variables all the time in co -relation to the formula though plummeting soaring every 6 months is a regular phenomenon.if the change is every 6 months why the linking factor must remains unmoved Please explain The nifty tool just introduced on the site is piece of work. Will the Gconnect users be able to download it in ZOHO version or as spreadsheet. Please provide workable download link. Gconnect is the place where every Central/State Govt Employees must look for the right answers without breaking much of their heads sans turning pages only to find that they are going nowhere. Dig Data Login or just visit Gconnect .It helps.

  2. Respected sir

    In 5th commission 40% commutation of the pension was paid for 9.81year ie for 117.7 months but in 6th pay commission it is reduced to 8.194 years ie only for 97 months but recovery period remained the same ie 15 years This recovery period should be reduced in the same proportion

  3. a new year gift is coming from the govt side with the increase of DA from January at 35%. an enhancement of 8%. add in your basic+GP+PP+Npa and with your transport allwances

  4. In CEA any tax exemption that is 100 Rupees per month per child is eligible or not. please confirm with Government Orders.

  5. Hai viewers

    As per latest Labour Bureau indications, the expected DA w.e.f. 1.07.20-10 is 9% or more.
    Good luck to all.
    Can any body confirm, if DA reaches 50%, whether it will be merged into basic, like 5th CPC.

  6. Hai :

    As per latest figures, the expected DA w.e.f. 1.07.20-10 is 10%. Do anybody have idea of DA reaches 50% on 1.1.2011, whether it will be merged into basic, as done in 5th CPC.

  7. 50% DA merger is at the option of the Govt. IN last PC the merger was done at a much later date,not imdtly .

  8. Yes Mr Sampath. IT is ok. But what about now in 6th cPC. WHether the same is merging in the basic or not. 6th CPC recommended all the allowances are increased 25%.

    Whether HRA will also be increased, because it is like an allowance for House Rent. Can anybody confirm and throw some light on this.

  9. Please clarify whether Stenographer Grade III in subordinate office (4000 – 6000) will get justice or not.  Only redesignation of Stenographer II is not enough for us.  We want GP Rs.4200/- also.  According to 5 CPC I was expected to get next scale (5000-8000) means GP 4200/- but now according to 6 CPC I will get this GP after 20 years. This is not fair.  We want designation as well as GP also.  Please suggest what we have to do for the same. 

  10. Hi when is the DA increase likely to be announced??. The current parliament session is over and no announcement!!!!!! Any updates please????

  11. wheather circular for D.A. w.e.f. 01-07-2010 is issued or not most probabale date for issue for circular whether the adhoc bonus for year 09-10 declare or not

  12. i m a cg in GP Rs.4200. I travelled frm Bagdogra to Delhi BY A PRIVATE AIRLINES on All India LTC , Gngtok NER.what I M entitled to be reimburshed fulln fare paid my me .

  13. Food price Index flying ! Chance leads to 7% D.A in Jan 2011: C.J.Mathews Sankarathil,MBA
    * Food price index up 16.44 pct vs 15.46 week ago
    * Fuel price index up 10.73 pct vs 11.48 week ago
    * Aug consumer price index up 9.88 pct vs 11.25 pct in July
    * Cbank seen lifting key rate by 25 bps by end-December (Adds fiscal deficit, CPI, analyst quote)
    By Matthias Williams
    NEW DELHI, Sept 30 (Reuters) – India’s annual food price inflation continued to quicken in mid-September as heavy rains disrupted supplies and analysts see another rate hike by the year end as the central bank acts to stamp down high inflation.
    The Reserve Bank of India (RBI) has said emerging macroeconomic conditions, especially prices, would determine its future action, with five rate hikes since mid-March having brought monetary conditions close to normal.
    The surge is also a political concern for the ruling Congress party, which faces key state elections this year and next. With a third of the world’s poor living in India, the country had seen governments being voted out over high food prices.
    Food makes up around 14 percent of the wholesale price index (WPI), the most watched price gauge in India. Policymakers had expected the good summer harvest to slow price rises.
    The RBI projects headline inflation INWPI=ECI to ease to 6 percent by March, when the current financial year ends, from 8.5 percent in August, but noted in its September policy review that food prices continued to contribute to inflationary pressures.
    “We don’t expect food inflation to ease substantially before the kharif (winter harvested) crop comes into the market,” said Indranil Pan, chief economist at Kotak Mahindra Bank.
    The central bank last raised its repo rate, at which it lends to banks, on Sept. 16 by 25 basis points to 6 percent. Analysts expect another quarter-point rise by the year end.
    Data on Thursday showed the food price index in the year to Sept. 18 rose 16.44 percent, compared with 15.46 percent in the previous week, on higher prices of pulses, onions and vegetables.
    It was the second straight rise under a new data series — with a different base year of 2004-05, new components and weightings — under which readings began in the week to Sept. 4.
    Separate data showed the consumer price index (CPI) for industrial workers rose 9.88 percent in August, slower than July’s 11.25 percent increase. The CPI component basket has a higher proportion of food items than the WPI basket
    Posted by The evergreen hero for all time. at 10:28

  14. Find the below article to know about the brutal reduction of retirement age by EMS, the LDF personality: C.J.athews Sankarathil
    Tuesday, April 28, 2009A small extension of service to government employees
    BRP BHASKAR
    Gulf Today

    The government of Kerala has surreptitiously offered a small extension of service to its employees by pushing the date of retirement to the last day of the financial year in which they attain the age of superannuation.

    Kerala has the highest life expectancy in the country. Ironically, it also has the lowest retirement age.

    At the time of independence, the retirement age of government employees was 55 years throughout the country. That was enough to assure them a reasonably long working period since life expectancy at that time was only 32 years.

    Thanks to the success of various governmental and non-governmental programmes, over the last six decades infant mortality rate in the state dropped dramatically and public health improved significantly.

    Today, life expectancy in the state is higher than in the rest of the country.

    At the time of the 2001 census, life expectancy at birth in Kerala was at 71.7 years for males and 75.0 years for females as against 64.1 years for males and 65.4 years for females in the country as a whole.

    In 1966, when Kerala was under President’s rule, the state government, taking note of the rising longevity, raised the age of retirement of government employees to 58 years.

    A coalition government, headed by the Communist Party of India-Marxist (CPI-M), which came to power the following year, reduced it to 55 years again. This was done to create immediate vacancies in the government and facilitate fresh recruitment.
    Quite naturally youths welcomed the step. Since then the governments at the Centre and in the other states have raised the retirement age to 58 or even 60 years.

    Nowhere is it below 58 years. Central government employees now retire at 60. In Assam and Uttar Pradesh, too, the retirement age is 60 years.

    School teachers in Kerala, like government employees, retire at 55. The retirement age of teachers in Madhya Pradesh is 62 years, which is higher than that of government employees.

    No government in Kerala has had the courage to increase the retirement age since the move will be unpopular with young jobseekers. The state suffers a double loss on this account.

    On the one hand, the state incurs a huge expenditure by way of pension payments to employees for long periods. On the other, it loses the services of persons who have work experience and are physically and mentally fit to work for several years more.

    Even government doctors retire at 55 in Kerala. This has proved beneficial to the private medical colleges and hospitals that have sprung up in the state in recent years.

    These institutions are able to find their requirement of doctors and teachers from among the recently retired. Pension and salary payments account for about 75% of the Kerala government’s non-plan expenditure.

    In the past 10 years, government employees’ salary payments have risen from Rs22.16 billion to Rs80.55 billion a year and pension payments from Rs7.53 billion to Rs40.54 billion a year.

    Early this year, a government-appointed public expenditure review committee proposed that the retirement age of government employees and teachers be raised from 55 to 58 years immediately and to 60 years later on.

    It said this would release a significant part of the government revenue for productive use. It pointed out that often the government paid pension to retiring employees for 25 to 30 years. It was not good for healthy persons to receive payment without doing any work.
    Chief Minister VS Achuthanandan immediately shot down the proposal. Home Minister Kodiyeri Balakrishnan said, “No political party has come forward to support the demand for a higher retirement age.”

    Some organisations of government employees have called for upward revision of the retirement age. However, no political party backs the demand.

    The Democratic Youth Federation of India, the CPI-M’s youth wing, opposes the demand on the ground that it will restrict employment opportunities.

    There are 4.26 million jobseekers on the live registers of the employment exchanges in the state. Of them, 2.31 million are women. The government’s annual intake of 18,000 can make little difference to joblessness of this magnitude.

    The move to shift the retirement date of employees from their dates of birth to the last day of the financial year was announced by Finance Minister TM Thomas Isaac in this year’s budget speech. To mollify the youth, he has said some 12,000 government jobs will still be on offer this year.

  15. I am really grateful to acknowledge that you bring out important information to the working class in India, especially the government employees. Estimate Dearness Allowance for the Central Government employees creates awareness among that section of employees, who follow Central DA pattern, announced six months once.

    I would like to have the formula calculator adopted for the employees who are working in Central Public Sector Enterprises who follow the Industrial DA pattern – for those whose wage revision effected from 1.1.2007 and those whose wage revision is yet to take place. Thank you.

  16. it is clear that 6percent da increase is sure from jan 2011 and hence the da goes beyond 50percent, than what about trvelling allowance. is it increase by 25percent or not. please suggest.

  17. Iam a Govt.employee who will be retiring on superannuation on 31.7.2011. My department submiited the pension papers in Jan 2011 after calculating the pension and other retirement benefits as per my pay as on 1.7.11(i.e after including the increment due on 1.7.2011). However, the accounts department returned the pension papers with a remark- ” the increased pay on acoount of increment should only be considered after the drawal on 1.7.11 and hence pension and other benefit should be now be calculated as per the present pay,excluding the increment. Please clarify.

    1. Dear ragini
      Yes your PAO is correct. You cannot include the amount increment which is due. You have to give the pension proposal only with the actuals. Upon drawal PAO will issue correct PPO with the increased pay. So also upon any DA change for 07/2011 (which will be given effect by Sept or October 2011 only) you will get the Ret Gratuity/Leave salary arrs at that time only by taking increased DA. Nothing to worry

  18. In today,s TOI, there is news item that new series of AICPI based on Jan 2006 is being introduced by GOI. What will be the impact of such measures in DA calculation

  19. Sir I have applied for HBA & submitted all the records. and request any body to clarify the following points.
    I have taken the approval for constructing a house with Ground floor & First floor from the local authority during April last year and could not able to construct a house because of some problems.
    Now i am planning to construct only Ground floor because of some financial constraint and submitted the revised estimate for the ground floor.
    Approving authority is insisting me that you have to construct a house as per the approved plan or submit the revised plan even i have told the authority to that i can give the undertaking for this, because the maximum ceiling the office can provide is 7.5 lakhs.
    but the problem is to get the revised estimate i have to start from the zero and the whole exercise will take two months and whatever i have paid for the licensce fee, taxes etc., (1750+14550) is not going to be adjusted nor refunded.
    Can any body suggest the ways how to to about this.

  20. Central government rules and typical cases pertaining to house building advance (HBA)
    because i have taken the approval for Ground Floor & First floor from the local authority and now planning to construct only ground floor because of financial constraint. Office is only providing Rs 7.5 lakhs only. I am ready to give the undertaking to this effect.

  21. As scheduled, Cabinet has approved 6% DA, today. Orders yet to come. Now think, about 25% merging. Is Tpt allowance will be increased 25% or not, In addition to CEA.

  22. An employee in the PB-2(9300 – 34800) Rs. 4200/ as Technical Assistant, got promotion to the post of Deputy Office Suprintendent in the same PB and grade pay. Is he eligbile to get his pay fixed by availing the benefit of one increment on promotion. Here his responsibiliyt on promotion is totally changed.

  23. I am working under Ministry of Health and family Welfare, GoI. My current basic is Rs.15590/pm, Grade pay is Rs.4800/pm.I want two order copies.

    1. We can visit north eastern states instead of home town trip.

    2. We can fly to north eastern states (those belw RS.5400 as grade pay) from the NE states to NE states under any where in India LTC scheme.

    These two order copies are required. Please send these, Sir or kindly inform me from where I can get these orders.

    Thank You

  24. I want to know did it make any effect on Transport Allowance Fixed rate Rs.800/- after reaching DA to 51%

  25. Sir, I have promoted in the grade of Inspector in Central Excise deptt. on feb’11.My basic pay is fixed Rs.10540+Gp4600.I opted promotional inrement in July’11.But new direct recruited inspectors junior to me are getting B.P Rs 12540+G.p 4600. I heard the matter is sent to anomaly committee. Is there any pay protection for the promotee inspectors? please answer it.

  26. Expected DA w.e.f. 1.7.2011, available as on date 55.28%, still Apr, May, June 2011 figures have to arrive. May be 7 Plus i.e., 58% w.e.f. 1.7,.2011.

  27. As per the Labour Bureau indications, regarding expected DA w.e.f. 1.7.2011, AICPI for the month of April, 2011 is 186 points. Even if the index for the months of May, 2011 and June, 2011 goes up by 188 and 190 points respectively , the twelve months average comes to 183.75 points and the D.A. from 1-7-2011 works out 58.73 %. Central Government Employees will get only 7 % increase in D.A. from 1-7-2011.

  28. Dear Sir,

    Whether pay fixation is entitled to an employees under FR SR on promotion from a junior post to a higher with higher responsibilites.The grade pay

    is same in the incumbent post and promoted post

  29. Sir,
    Please inform me the base year of calculating Industrial D A. At present we are getting 100% DA for our basic pay. Our industry is situated in Kerala State. Please let me know any change in the base year recently from the government of India.
    Thanks and regards
    pius

  30. G connect should modify/upgrade the DA calculating tool so that DA from Jan 2012 onwards is also calculated

  31. I have commented on July 23, 2011 that DA calculating tool should be modified/upgraded in order to have projection on DA from 01.01.2012 onwards. Please do something immediately so that the DA calculating tool does not loose its relevance.

    1. Sir,

      Pl provide me D A ,HRA and CCA payable on basic of Rs 550/ and Rs 740/ for the period
      Jan84 to Dec.1985.

  32. please tell me whether a nursing official is entitled for nursing allowance, uniform allowance in his/her duration of study leave or other leave for one month or more.

  33. Sir,
    Can someone help me to get the fitment table from 3rd CPC to 4th CPC for Rs. 330-10-560 scale. I joined in Apr 84 – Basic Pay 330/-. They had fixed my Basic to the minimum i.e. Rs. 1200/-, whereas my colleague who joined in Jan 85 is also fixed at the minimum of Rs. 1200/-. Now his increment is in jan 86 itself, whereas my increment is in apr 86. I presume that my basic should be Rs. 1230/- instead of Rs. 1200/-. Kindly someone clarify with proper DA, ADA, IR and fitment table. Thanks

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