How to calculate DA under new CPI – Infographic
Calculation of DA under the new CPI
Upto August 2020
CPI Index Base
2001=100
From September 2020
CPI Index Base
2016=100
DA for central government employees started from 0% with effect from 1st Jan 2016 by merging DA with basic pay.
DA payable w.e.f 7th CPC Basic Pay
=
(Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015) x 100/(Average of CPI-IW recorded in 2015)
DA with effect from 1st January 2016
DA with effect from 1st July 2019
In April 2020, Government ordered freezing of DA till July 2021.
4% increase of DA announced from Jan 2020 was also put on hold
With the introduction of new series, a linking factor will be required to bridge old series of CPI and new consumer price index for calculating DA for Central Government Employees and pensioners.
As per Govt’s press release, the maiden index on new base for September, 2020 stands at the level of 118.1 and linking factor for the conversion of new series index to previous series on base 2001=100 is 2.88.