DA from January 2022 for Central Government Employees calculated as 34%
DA from January 2022 – Dearness allowance for Central Government Employees and Pensioners is 34% on the basis of All India Consumer Price Index for the months from January 2021 to December 2021.
From January 2016, Dearness Allowance of Central Government Employees was calculated based on consumer price index with Base 2001=100 till August 2020 as per the recommendations 7th Pay Commission Report which was accepted by Govt.
From the month of September 2020, Govt replaced CPI with base 2001=100 with new consumer price index with base 2016=100.
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, linking factor for the conversion of new series index to previous series on base 2001=100 is 2.88.
This linking factor will have to be used to convert CPI (IW) announced by Government from September 2020 to determine Dearness Allowance of Central Government Employees and Pensioners. For example, Consumer Price Index with base 2016=100 for the month of January 2021 is 118.2 can be converted to CPI with base 2001=100 as 118.2 X 2..88 = 340 (rounded as 340 to the nearest whole number). Like wise, consumer price index for the months from January 2021 to December 2021 is determined as follows
Table of Consumer Price Index with the base 2001=100 calculated from CPI (IW) with Base 2016=100 for the Months from January 2021 to December – 2021
Month | CPI (IW) 2016=100 released by Govt from Sep 2020 | CPI (IW) 2001=100 calculated using the linking factor of 2.88 |
---|---|---|
January 2021 | 118.2 | 340 |
February 2021 | 119.0 | 343 |
March 2021 | 119.6 | 344 |
April 2021 | 120.1 | 346 |
May 2021 | 120.6 | 347 |
June 2021 | 121.7 | 350 |
July 2021 | 122.8 | 354 |
August 2021 | 123.0 | 354 |
September 2021 | 123.3 | 355 |
October 2021 | 124.9 | 360 |
November 2021 | 125.7 | 362 |
December 2021 | 125.4 | 361 |
New DA Calculator for calculating Dearness Allowance payable to Central Government Employees and Pensioners
Taking in to account, all the factors discussed above we have now come up with a new DA Calculator using which we can estimate Dearness Allowance applicable to Central Government Employees and Pensioners.
Expected DA for Central Government Employees with effect from 1st January 2022
we can estimate DA from January 2022, for which we have actual All India Consumer Price Index for 12 months in hand i.e from January 2021 to December 2021.
DA with effect from 1st January 2022 | = [ (340+343+344+346+347+350+354+354+355+360+362+361)/12]-(261.4)X100/261.4 |
= 34% (3% increase in DA from January 2022 added to current DA rate of 31%) |
This calculation gives 34% of Dearness Allowance which means Central Government Employees and Pensioners will be given additional DA of 3% from 1st January 2022. DA order will be issued by Govt normally in the months of March or April for the 1st Installment of DA every year.
This news had beenappearing all over off and on… Has any decisionbeen taken by teCabinet to releaseany increase in DA/DR toGovt employees?