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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.

Example

CPI for September 2020 with base 2016=100

118.1

CPI for September 2020 with base 2001=100

118.1 x 2.88 = 340.13

Considering the above factors GConnect has now come up with a new DA Calculator.

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