Friends,
In each financial year the Center Government declares Dearness Allowance for the employees working in different Departments/ Ministries/ Autonomous Bodies/ Corporations. The State Governments also follow these rules for calculating DA for the employees working under different States. There is a fix formula to calculate Dearness Allowance. Let us calculate expected Dearness Allowance which is due from July 2012.
DA (Dearness Allowance) rates are fixed on the basic of All India Consumer Price Index for industrial workers. The base year to calculate DA has been taken as 2001. This new DA rate system is adopted by Central and State Govts and public sector Under takings from 01.01.2006 with new pay scale as declared by the Pay commission . DA rates are to be announced half yearly basis and applicable from first of January and First of July.
Price Index for Last 12 month
How to calculate Dearness Allowance from the year 2006: It is very simple ,suppose if you want to calculate Dearness Allowance with effect from Jan-12, get the average of monthly All India Consumer Price Index for industrial workers with the base year 2001=100 for the preceding 12 months and apply the same in the following formula
Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76 (Ignore fractions)
Here 115.76 means average of price index from Jan 2005 to Dec 2005.
So to calculate July 2012 DA rate (to be announced) we need Price index average from July 2011 to June 2012.As per Labour Bureau, Department Statistics, Government of India website index for July 2011 to April 2011 has already been declared ,But for May,2012 and June,2012 yet to be declared.
AICPI data for July 2011 to June ,2012( May and June 2012 estimated basis)
Jul-11
|
Aug-11
|
Sep-11
|
Oct-11
|
Nov-11
|
Dec-11
|
Jan-12
|
Feb-12
|
Mar-12
|
Apr-12
|
May-12
|
Jun-12
|
total
|
AVG
|
193
|
194
|
197
|
198
|
199
|
197
|
198
|
199
|
201
|
205
|
208
|
212
|
2401
|
200.08
|
We have assumed AICPI for May 2012 to 208 and June 2012 to 212.
Even if we assume the same 209,213 even then result remain the same .But according to our Estimate this will not be more than 213 in any case.
On the Basis of The assumption the calculation is given as under.
Dearness allowance (01.07.2012)=(200.08-115.76)*100/115.76=72.84 (ignore fraction)=72 %
so DA rate from 01.07.2012 to be fixed at 72 % which is a increase of 7 % from previous rate of 65 % .
