Expected DA from 1.1.2025 Calculation Table

How to calculate Dearness Allowance from Jan 2025?

Calculating the Dearness Allowance (DA) from January 2025 is quite straightforward according to the 7th Pay Commission. You’ll need the AICPIN figures for the entire year from January to December 2024. These figures are based on the 2016 index and must be adjusted to reflect the base year of 2001. The conversion factor to transition the AICPIN data from 2016 to 2001 is 2.88. By multiplying the 2016 AICPIN figures by this factor, you will obtain the required data for 2001. Below is a clear step-by-step guide to determining the DA percentage for government employees and pensioners in India:

Step 1: Convert AICPIN to the year 2001.
Step 2: Sum the figures for all 12 months.
Step 3: Calculate the average for these 12 months.
Step 4: Determine the increase over the benchmark of 261.42.
Step 5: Divide this increase by 261.42.
Step 6: Round down to the nearest whole number, ignoring any decimals.

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AICPIN May 2019 Two Points Increase – Expected DA Fixed at Next Level

All India Consumer Price Index for the month of May 2019 has been released by the Labour Bureau on 28th of this month and the CPI(IW) index has jumped to 314 by adding of two points, due to the pressure from Food Group index. At item level, Wheat Atta, Arhar Dal, Groundnut Oil, Poultry (Chicken), Milk Buffallo, Chillies Green, Garlic, Ginger, Onion, Banana, Brinjal, Carrot, French Bean, Green Coriander Leaves, Lemon, Potato, Tomato, Electricity Charges, Medicine­ Allopathic, etc. are responsible for the increase in index.

Out of 6 months of AICPIN needs to calculate the Dearness allowance and Dearness relief, we received 5 months statistics only. The 5th month i.e. May 2019 index is increased 2 points is remarkable. Along with the increase, the percentage of additional dearness allowance from july 2019 is kept in next level.

After 7th Pay Commission implementation, this is the highest percentage in additional allowance for Central Government employees, Civil and Defence Pensioners and Family Pensioners.

5% of additional Dearness Allowance and Dearness Relief may increase from July 2019 to all central civil and defence pensioners and family pensioners with minimum amount of Rs.450 per month.

7^th CPC Dearness Allowance Rates

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No.5/1/2019-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

‘CLEREMONT’, SHIMLA-171004
DATED: 28th February, 2019

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – January, 2019

The All-India CPI-IW for January, 2019 increased by 6 points and pegged at 307 (three hundred and seven). On 1-month percentage change, it increased by (+) 1.99 per cent between December, 2018 and January, 2019 when compared with the increase of (+) 0.70 per cent for the corresponding months of last year.

The maximum upward pressure to the change in current index came from Housing group contributing (+) 5.16 percentage points to the total change. At item level, Wheat, Arhar Dal, Fish Frsh, Goat Meat, Coconut, Lady’s Finger, Tomato, Flowers/Flower Garlands, etc. are responsible for the increase in index. However, this increase was checked by Onion, Brinjal, Cabbage, Carrot, Cauliflower, Gourd, Peas, Potato, Cooking Gas, Electricity Charges, etc., putting downward pressure on the index.

The year-on-year inflation based on CPI-IW stood at 6.60 per cent for January, 201-9 as compared to 5.24 per cent for the previous month and 5.11 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at (+) 0.97 per cent against (-) 0.96 per cent of the previous month and 3.36 per cent during the corresponding month of the previous year.

At centre level Nagpur reported the maximum increase of 21 points followed by Nasik (17 points), Amritsar, Quilon, Jharia (13 points each) and Jaipur (12 points). Among others, 11 points increase was observed in 3 centres, 10 points in 7 centres, 9 points in 3 centres, 8 points in 5 centres, 6 points in 9 centres, 5 points in 6 centres, 4 points in 7 centres, 3 points in 7 centres, 2 points in 7 centres and 1 point in 6 centres. On the contrary, Darjeeling recorded a maximum decrease of 4 points followed by Siliguri (3 points). Among others, 2 points decrease was observed in 4 centres and 1 point in 2 centres. Rest of the 4 centres’ indices remained stationary.

The indices of 35 centres are above All-India Index and 42 centres’ indices are below national average. The index of Rourkela centre remained at par with All-India Index.

The next issue of CPI-IW for the month of February, 2019 will be released on Friday, 29th March, 2019. The same will also be available on the office website www.labourbureaunew.gov.in.

(AMRI LAL JANGID)
DEPUTY DIRECTOR

Source: labour bureau new

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DA Calculation as per 7th CPC

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Centre to survey spending patterns of working class

In a bid to understand the spending patterns and living conditions of working class, the Centre has decided to conduct a survey of workers’ family income and expenditure.

The survey, which will be conducted by the National Sample Survey Organisation, a Government of India body, will be used to finalise consumer price index (CPI) numbers for the working class. The CPI is the base for deciding dearness allowances (DA) of the working class.

“The Working Class Family Income and Exemption Survey-2015 will cover workers engaged in seven organised sectors of employment-registered factories, mines, plantations, ports & docks, public motor transport undertakings, electricity generating and distributing establishments, and railways,” an official from NSSO told Deccan Herald.

The survey will be conducted in 88 centres spreading across 28 states and union territories including Delhi, Karnataka, Andhra Pradesh and Uttar Pradesh. The survey will be conducted in eight places in Karnataka — Bengaluru, Belagavi, Chikkamagaluru, Davangere-Harihar, Hubballi-Dharwad, Kodagu, Mysuru and Mangaluru.

Read more at: Deccan Herald

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It is a well-known fact that every six months, the Central Government increases the Dearness allowance for its employees during the months of January and July. The increased amount is calculated on the price index (CPI IW BY 2001=100) of essential commodities. Rise in the Dearness allowance is being calculated on the basis of the changes in the prices of the essential commodities during the periods between January and June and the period between July and December.

But, it takes around three months since the release of the price index for the months of June and December to arrive at the calculation for the increase in the Dearness allowance. With the result that the increase due from the month of July is being given only from the month of October and the amount due from January is being given only from the month of April.

And, because of this situation, the amount due for the left-behind period of two months is to be settled as arrears. Practical problems arise in the calculation of the arrears amount and also problem arises in clarifying the doubts of the beneficiaries. Pensioners especially, are more tensed up over this procedure.

To avoid this situation, the price index during the periods from November to April and from May to October can be taken into account and the increase in the Dearness allowance calculated based on the information relevant to these periods. The amount can be disbursed from the months of January and July as per this calculation so that there’s no due as arrears.

We imaginatively tested this method to find out the result. It was found out that there was no tangible change in the increase amount if calculated on the basis of the price index obtained during the months of April and October.

Source: http://centralgovernmentemployeesnews.in

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An another announcement of hiking in Dearness allowance to the employees of State Government of Tamil Nadu today.

Tamilnadu Chief Minister announces an additional DA to state employees from 1.1.2015.

More than eighteen lakh state government employees will get the hike, which is effective from 1.1.2015.

Following the Central Government, the state government has declared DA to its employees from the existing rate of 107% to 113% with effect from 1.1.2015.

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Six Pay Commissions were formulated by the Central Government until now. The 6th Pay Commission had some salient features that were never seen before. Let’s find out why this particular Pay Commission was so monumental.

The recommendations made by the previous five Pay Commissions were interrelated to each other. People who had studied these would know that despite the similarities, the recommendations were not exactly generous.

“Weightage” was the most-frequently used terminology in all previous pay commissions. New employees wouldn’t be aware of this. Weightage was all about calculating a certain percentage of the basic pay and adding it to the new basic pay (Basic Pay Weightage, Fitment Weightage or Fitment Benefit). This was the method prescribed by the five Pay Commissions before.

Even more pathetic was “Increment Weightage”. Particularly the 5th Pay Commission didn’t consider all the increments that the employee had received. According to the recommendations of 5th Pay Commission, it was given on the basis of one out of three increments.

As well, those were the days when promotions were rare. For years, employees were getting meager amount as annual increment. Only disappointment remained because the employees felt as if their ten years’ progress was unfairly evaluated.

Since no significant changes were made in the calculation of DA in the 5th Pay Commission, for the entire ten years, percentage of Dearness Allowance had increased by only 74%.

Until the 5th Pay Commission, House Rent Allowance was given in four categories – 5%, 7.5%, 15%, and 30% or as consolidated amount.

Lack of generosity was also obvious in areas like Tuition Fees, Transport Allowance, and Leave Travel Concession.

The 6th Central Pay Commission was special because it was radically different from its predecessors.

“Grade Pay was introduced, and, although there were MACP confusions due to the new Hierarchy system, since its pluses outnumbered its minuses, we feel that there is nothing wrong in recollecting the good points that the Commission had recommended. This article will help the next generation employees understand why the 6th Pay Commission was so unique.”

Multiplication Factor : This is considered by many as a transparent approach.

Children’s Education Allowance : From a meager Rs.40 per month, it was raised to Rs.1000. This reflected genuine interest and concern about the future generation.

3% Increment : The decision to calculate the annual increment at 3% of the current basic pay continues to be applauded even now.

Transport Allowance : Although Convenience Allowance was clubbed with this, it was a good decision to have made the revision of transport allowance dependent on the dearness allowance.

Leave Travel Concession : Which was until then, given only for Class II travel, was elevated to AC- Tier III, and Tier II.

Child Care Leave : It was a blessing for female employees.

Military Service Pay : First time recommendation for the Armed Forces Personnel by 6th Pay Commission.

DA Calculation : The Dearness Allowance was calculated based on the All India Consumer Price Index published by Labour Bureau. Calculation method for arriving the percentage of additional Dearness Allowance was recommended by 6th CPC with important average index factor of 115.76 instead of 306.33. Dearness Allowance went up as high as 10% and earned an increase of about 120% in its ten years’ tenure.

Finally, All Central Government Employees Unions and Federations played a very important role in the revolutionary changes and liberal recommendations that were being offered to the employees. Let us not forget that it was our unified voice and determination that made it all possible.

 

Source: http://centralgovernmentemployeesnews.in/

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Dearness Allowance is one of the important issues that the Pay Commission deals with. The calculation method that was recommended by the 6th Pay Commission was radically different from the ones suggested by all the previous Pay Commissions. Dearness Allowance, which was increasing by 1 or 2% until the 5th Pay Commission suddenly shot up to the peak of double-digit numbers.

Until the 5th CPC, the Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. From the 6th Pay Commission onwards, CPI (IW) 2001=100 was used for calculating the DA.

There was another crucial change that the 6th CPC made. It recommended that the Reference Base Index be changed from 306.33. As a result, 115.76 became the new Reference Base Index from 01.01.2006 onwards.

Will the 7th CPC introduce a new CPI (IW)? Or will it bring about changes in the Reference Base Index?

This is something that everybody wants to know.

Just watch the difference between 5th and 6th CPC DA Calculation methods…

5th CPC calculation method is given below…

The extant formula for calculation of DA till 1-1-2004 was:

12 Monthly Average – 306.33
——————————————————–  x 100 = percentage increase in prices
306.33

The Fifth Pay Commission had recommended that DA should be converted into DP each time the CPI increased by 50% over the base index. The Government merged 50% of DA with the
basic pay w.e.f. 1-4-2004. The formula for calculation of DA for the period from 1-7-2004 is:

12 Monthly Average – 306.33
{  ————————————————  x 100} – 50 = percentage increase in prices
306.33

6th CPC calculation method is given below…

(12 Monthly Average) – 115.76
——————————————————–      x 100 = percentage increase in prices
115.76

Source: http://7thpaycommissionnews.in/

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