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DA Calculation Method

The document summarizes the revised calculations for dearness allowance based on changes to the All India Consumer Price Index. It provides tables showing the monthly and annual averages for the AICPI from 2005-2008 using the 2001 base series. It then calculates the dearness allowance percentage for different dates by taking the average AICPI for the preceding year or half-year and comparing it to the base index of 115.76 set for January 2006. The dearness allowance was revised to be 2%, 6%, 9%, 13%, and 16% effective from July 2006, January 2007, July 2007, January 2008, and July 2008 respectively based on these calculations.

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5K views2 pages

DA Calculation Method

The document summarizes the revised calculations for dearness allowance based on changes to the All India Consumer Price Index. It provides tables showing the monthly and annual averages for the AICPI from 2005-2008 using the 2001 base series. It then calculates the dearness allowance percentage for different dates by taking the average AICPI for the preceding year or half-year and comparing it to the base index of 115.76 set for January 2006. The dearness allowance was revised to be 2%, 6%, 9%, 13%, and 16% effective from July 2006, January 2007, July 2007, January 2008, and July 2008 respectively based on these calculations.

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[email protected]
Copyright
© Attribution Non-Commercial (BY-NC)
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Government has notified the revised DA calculation based on the AICPI 2001 series published by labourbureau.nic.

in

REVISED DEARNESS ALLOWANCE CALCULATION BASED ON GAZZETTED NOTIFICATION OF SIXTH PAY


COMMISSION

All India Consumer Price Index (General) for Industrial Workers (Base 1982=100)

Year Jan Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average(Rounded)
2005, 526, 525, 525, 529, 527, 529, 538, 540, 542, 548, 553, 550, 536*

Note:

* 536 is taken as a base as on 01.01.2006 for revised DA calculation. It comes to 115.76 when converting in 2001 series after dividing by
a linking factor of 4.63 in 1982 series, ( 536/4.63 = 115.76). this figure is given in Gazzeted notification

All India Consumer Price Index (General) for Industrial Workers (Base 2001=100) published by labourbureau.nic.in.

Year Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Average(Rounded)
2006, 119, 119, 119, 120, 121, 123, 124, 124 125, 127, 127, 127, 123
2007, 127, 128, 127, 128, 129, 130, 132, 133, 133, 134, 134, 134, 131
2008, 134, 135, 137, 138, 139, 140, 143

Note : Read last three column of table given below as

1 = 12 monthly average of AICPI (IW) base year 2001=100

2 = % DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76

3 = % DA after rounded off

Date
1.7.2006, 116, 116, 117, 118, 119, 119, 119, 119, 119, 120, 121, 123, 118.95, 2.76, 2%
1.1.2007, 119, 119, 119, 120, 121, 123, 124, 124, 125, 127, 127, 127, 123, 6.25, 6%
1.7.2007, 124, 124, 125, 127, 127, 127, 127, 128, 127, 128, 129, 130, 126.91, 9.63, 9%
1.1.2008, 127, 128, 127, 128, 129, 130, 132, 133, 133, 134, 134, 134, 131, 13.16, 13%
1.7.2008, 132 , 133, 133, 134, 134, 134, 134, 135, 137, 138, 139, 140, 135.25, 16.83, 16%

DA calculation as on 01.07.2006 :

12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2005 to 30.06.06 = 118.95

% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (118.95 - 115.76)*100/115.76 = 2.76 %

% DA after rounded off = 2 % effective from 01.07.2006

DA calculation as on 01.01.2007 :

12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.01.2006 to 31.12.06 = 123

% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (123 - 115.76)*100/115.76 = 6.25 %

% DA after rounded off = 6 % effective from 01.01.2007

DA calculation as on 01.07.2007 :

12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2006 to 30.06.07 = 126.91

% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (126.91 - 115.76)*100/115.76 = 9.63 %

% DA after rounded off = 9 % effective from 01.07.2007


DA calculation as on 01.01.2008 :

12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.01.2007 to 31.12.07 = 131

% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (131 - 115.76)*100/115.76 = 13.16 %

% DA after rounded off = 13 % effective from 01.01.2008

DA calculation as on 01.07.2007 :

12 monthly average of AICPI (IW) 2001 series, (year 2001=100) from 01.07.2007 to 30.06.08 = 135.25

% DA calculation = (Avg AICPI base 2001 - 115.76)*100/115.76 = (126.91 - 115.76)*100/115.76 = 16.83 %

% DA after rounded off = 16 % effective from 01.07.2008

Date for %DA


applicable
DA As on

1.7.2006 = 2 %

1.1.2007 = 6%

1.7.2007 = 9%

1.1.2008 = 13%

1.7.2008 = 16%

Notes :

1.AICPI for industrial worker Base 2001 is available from Jan. 2006 onward only, therefore as recommended by pay commission back
data from July 2005 to Dec 2005 is generated on 2001 series by carryingout back calculation on 1982 series ( by dividing linking factor
4.63) for calculating the 12 monthly average from July 2005 to June 2006 ( for applicable DA as on 01.07.2006).

2. AICPI 1982 series and 2001 series the 12 monthly average index is coming almost same but since in the gazzeted notification base
index as on 01.01.2006 is taken as 115.76 by using linking factor 4.63 on AICPI 182 series index 536 as 0n 01.01.2006 insteed of 116 as
given in pay commission report errta, the 12 % DA, effective from 01.01.2008 is now coming 13 %. This is the only change coming in
DA calculation after gazzetted notification.

Prepared by R. K. MAHAJAN

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