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How to calculate Dearness Allowance (DA) for July 2010 ?

Posted by binu P Wednesday, July 14, 2010


Dearness allowance - DA is calculated based on AICPIN (All India Consumer Price Index Number). For calculating DA for July 2010 we are using this AICPIN.

What is Dearness Allowance ?
Dearness Allowance is granted to compensate the price hike above 536 points(Base Year 1982=100) 115.76 Points(Base Year 2001=100), to which the revised pay scales relate. This will be sanctioned twice a year, payable from 1st Januray and 1st July, reckonedon the following basis.

(i) The twelve monthly average price index above 536/115.76 Points is determined twice in a year for the period ending December and June.

(ii) The percentage increase is taken in whole number only and the fraction ignored

(iii) Neutralization will be 100% uniformly for all employees.

How to calculate Dearness Allowance:
(i) Dearness Allowance is paid on the Basic Pay as defined in FR 9(21)(a)(i)+NPA, if any (Personal Pay, Special Pay, etc., not included).

(ii) Fractions of 50 paisa and above to be rounded off to the next higher rupee and less than 50 paisa ignored.

(iii) For part of a month, rate of Dearness Allowance to be applied on the rate of pay+NPA and then Dearness Allowance for the number of days calculated.

(iv) In the case of daily-rated worker, monthly pay reckoned at 26 times his basic daily wages. Hence for part of a month, calculation of Dearness Allowance will be on Monthly pay + 26 x Number of days.

Current DA Rates for Employees:
The decision taken by the Government on the recommendations of the Sixth Central Pay Commission relating to DA, to decide that the DA admissible to all categories of Central Government employees shall be admisible from the dates mentioned below at the following rates:

Date                            Rate of DA

1.1.2006                              0

1.7.2006                              2

1.1.2007                             6

1.7.2007                             9

1.1.2008                            12

1.7.2008                            16

1.1.2009                            22

1.7.2009                            27

1.1.2010                            35

1.7.2010                            ?


The expected All India Consumer Price Index number (AICPIN) for Industrial Workers Base 2001=100 for the month of May 2010 has been released by Statistical Department, Labour.

The AICPIN for the month of May 2010 is 172.
Based on AICPIN index, we calculated DA percentage for 1st July 2010.
MonthAll India Index% of increase
Nov-0814821.44
Dec-0814722.38
Jan-0914823.39
Feb-0914824.32
Mar-0914825.12
Apr-0915025.98
May-0915126.84
Jun-0915327.78
Jul-0916029
Aug-0916230.23
Sep-0916331.45
Oct-0916532.67
Nov-0916834.11
Dec-0916935.7
Jan-1017237.43
Feb-1017039.01
Mar-1017040.59
Apr-1017042.03
May-1017243.54
Jun-10??
As per above data, we got 35% dearness allowance for last time in December 2009 based on % of increase in AICPIN.


How to calculate percentage of increase ?

DA = (Avg of AICPIN for the past 12 months – 115.76) * 100 / 115.76 .

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for May 2010 increased by 2 points and stood at 172 (one hundred and seventy two).

If the index value remains 172 in June 2010, then % of increase value is 44.91, =June 10 % of Increase index value minus Jan 10 % of Increase index value.

 = 44.91 (-) 35.7  = 9.21.
ie Minimum 9% percentage increase will be there in DA.
so DA will be  35 +  9 = 44 % .

AICPIN for June 2010 will be required to calculate the final value of DA.

Source:  Swamy's Handbook 2010,igecorner.com , http://labour.nic.in/,



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7 Responses to How to calculate Dearness Allowance (DA) for July 2010 ?

  1. will u please tell me present DA according fifth pay commission because my employer paying according fifth pay commission.

     
  2. Anonymous Says:
  3. as the All India Index for the month of June is 174, hence the DA is coming 45.01. So, we ll be getting 10% hike in DA from July 2010 onwards.

     
  4. DA has nothing to do with the actual cost of food items medicines etc in Kerala. One has to see that there was no commission for enhancing the pay and perks of MPs of both the houses, including pension fom 8000 to 20000 a month. If a central govt employee, both civilian and defence how many years one has to serve to get Rs.20000 as pension. Where as for MPs a short period only needed to get Rs.20000 as pension. The moot question as to whether a soldier serving in forward areas or a MP serving for a short period is good for the nation?

     
  5. Anonymous Says:
  6. YOU ARE RIGHT FROM LEFT DEAR BALA. A SOLDIER ALSO CANNOT SERVE BEYOND 52 YEARS FOR SUBEDAR AND 54 YEARS FOR SUBEDAR MAJOR. AN MP HAS NO AGE LIMIT. SO HOW CAN HE UNDERSTAND THAT PBOR HAVE TO LEAVE EARLY FROM ARMY. THEY DO NOT HAVE MUCH WORKING/EARNING AGE LEFT WITH THEM. IN THE PRESENT SCENARIO, WHEN PENSION OF PBOR HAS BEEN CHANGED FROM 50% OF HIGHEST IN THE PAY SCALE TO 50% OF LAST SALARY, THE DEARNESS ALLOWANCE/RELIEF IS VERY MEAGRE.

     
  7. Anonymous Says:
  8. HIKE IN DA IS LIKE LOLLIPOP WITH REMARKS FINISH IT FIRST WE PROMISE TO GIVE YOU MORE AFTER SIX MONTHS

     
  9. STAR Says:
  10. How much pesion should be a "X" Gp Hav with all allowances If he served in army 15 Years & 15 Days and retired on 31 March 2002.........
    Thanks in advance.

     
  11. Anonymous Says:
  12. please check http://www.squidoo.com/da-for-employees for latest DA calculations

     

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