Tuesday, July 5, 2011

DA from July 2011 to Rise by 7 % to 58%

30th June 2010

7% Rise in DA/DR LIKELY for Central Government Employees/ Pensioners w.e.f 1st July 2011

1. For all the Central Government Employees/pensioners, there would be a rise of 7% in DA /DR to, which would result in the overall DA / DR of 58% from 1.7.2011 - as per calculations below (as per Calculation based on All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100).

2. HOW TO CALCULATE DEARNESS ALLOWANCE...

Every month government has announced All India Consumer Price Index for Industrial workers, according to the price of commodities.

Month & year       Price Index with base year 2001 = 100

July 2010          178
August 2010        178
September 2010     179
October 2010       181
November 2010      182
December 2010      185
Jan 2011           188
Feb 2011           185
March 2011         185
April 2011         186
May 2011           187
June 2011          187

Total 2201/12   Average 183.416

3. With effect from 01.01.2006, Dearness allowance is granted to compensate the price increase above 536 points Base Year 1982=100) (115.763 points Base Year 2001=100).

4. The half yearly rise in DA/DR is granted on the basis of average price index of 12 months prior to 1st January/1st July.

5. As per above table, the total of twelve month average price index prior to July 2011 =2199. The twelve month average price index for the period as per above table= 183.416.

6. Subtract 115.763 from 183.416which works out to 67.653 It is a rise over 115.763 as on 31.12.2005 (with respect to base year 2001=100). Calculate the percentage rise by multiplying (67.653) with 100 / 115.763. It works out to 58.441.

7. The fraction is to be ignored. The whole number only is to be considered. So the DA/DR admissible with effect from 1st July 2011 is 58% thus a rise of 7% over 51% already being paid.

8. DA / DR wef 1.7.11

Average all India inflation index 183.416-115.763 = 67.653x100 divided by 115.76 = 58%

Courtesy: Er. S.C.Maheshwari

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