D.A.Calculator for State Employees : C.J.Mathews Sankarathil, MBA

       C.J.Mathews Sankarathil

         State President, Kerala Gazetted Officers Front

 Labour Bureau, Department Statistics, Government of India website: http://labourbureau.gov/. announces the CPI-IW index  every month.

After implementation of sixth pay commission report for Central Government employees, the dearness allowance has to be calculated based on CPI-IW index with the base year.Therefore,the DA with effect from the period 1.1.2006, has to be calculated using average Price CPI-IW index of 536 for 2005 (base 1982=100) adjusted to the base year 2001=100 by dividing the same with the Linking Factor between 1982 and 2001 Series which is 4.63. As a result, the average consumer price index (Industrial workers) for 12 months in 2005 (base 2001=100) was worked out to 115.76.

To calculate Dearness Allowance from the year 2006, twice a year using this average index? It’s quite simple. Say, if you want to calculate Dearness Allowance with effect from Jan-06, get the average of monthly All India Consumer Price Index (IW) with the base year 2001=100 for the preceding 12 months.

 Formula for calculating Dearness Allowance

 using AICPI-IW

Dearness Allowance = (Avg of AICPI for the past 12 months – 115.76)*100/115.76

For example if you want to calculate DA with effect from 1.1.2006, get the average of AICPI for the period from 1.1.2005 to 31.12.2005, which is 115.76 and apply the same in the formula as follows
DA with effect from 1.1.2006 = (115.76-115.76)*100/115.76
= 0%
DA w.e.f 1.07.2006 = (118.95-115.76)*100/115.76
= 2%


EXPECTED DA FROM JULY 2010  --95% or 96%--?

>> Saturday, Sept 24, 2010                  TRIVANDRUM<<

               All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the past four month have been published in Labour Bureau website. According to these results we can expect that July 2010 will witness at least 17.5% increase in Dearness Allowance That is from the Existing 78% to95%OR EVEN 96%

          All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of  jUNE, 2010 boosted to   174(one hundred and seventy four).For the past three months from February From 2010 January  the Index Number for Industrial Workers (CPI-IW) is boosting.The consumer Price Index Number(CPI-IW) for the month of August 2010 is  178 and the CPI-IW for the month of September 2010 yet to be announced.

         Hence it is not so easy to predict the exact  rate of  D.A hike for the period of July 2010 to December 2010.Since  the CPI-IW Number for the month of June and JUly was high as per the official CPI-IW index published by Labour Bureau, Department of Statistics,  take our expectation for an increase 17.5% hike in Dearness Allowance from July 2010.

The announcement of Central D.A from 35% to 45% leades the way to it. Since the pay revision is not implemented or interim relief declared, there is a chance for an increse of18% during the month of December, which can be drawn along with January salary.