DA-Calculator

Update: 01.05.2018 : How to Calculate 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
=0%

 

Like wise the latest DA Estimation, i.e DA from July 2018 is as follows

DA from 1st July 2018:

Month Actual AICPI-IW
July-2017 285
Aug-2017 285
Sep-2017 285
Oct-2017 287
Nov-2017 288
Dec-2017 286
Jan-2018 288
Feb-2018 288
Mar-2018 287
Apr-2018 To be released
May-2018 To be released
Jun-2018 To be released

 

With actual CPI for the months from July 2017 to March 2018 and estimated CPI from April 2018 to June 2018, we have to determine DA from July 2018.  A conservative estimation of keeping CPI static between April 2018 to June 2018 gives us an increase of 2% in DA from July 2018.

 

DA with effect from 1st July 2016 = [ (285+285+285+287+288+286+288+288+287+287+287+287)/12]-(261.4)X100/261.4
= 9 % (increase of 2% from the present DA of 7%)

 

 

However, we need at least 2 point increase in consumer price index in all the three months from April 2018 to June 2018, to get 3% increase in DA with effect from July 2018

DA with effect from 1st July 2016 = [ (285+285+285+287+288+286+288+288+287+289+291+293)/12]-(261.4)X100/261.4
= 10 % (increase of 3% from the present DA of 7%)

 

Checkout this new DA Calculator for Dearness Allowance after implementation of 7th Pay Commission report, to verify the above calculations.