Calculation of DA(Dearness Allowance) Rates
Method of Calculation
DA is calculated using the following formulae:
Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76
(Fractions are ignored)
The figure 115.76 signifies the average of Price Index from Jan 2005 to Dec 2005.
Example: To calculate Jan 2014 DA rate Price index average from Jan 2013 to Dec 2013 is taken.
AICPI data for Jan 2013 to Dec 2013 as per Labour Bureau, Department Statistics, Government of India website [1] is as follows:
Jul-12 |
212 |
Aug-12 |
214 |
Sep-12 |
215 |
Oct-12 |
217 |
Nov-12 |
218 |
Dec-12 |
219 |
Jan-13 |
221 |
Feb-13 |
223 |
Mar-13 |
224 |
Apr-13 |
226 |
May-13 |
228 |
Jun-13 |
231 |
Jul-13 |
235 |
Aug-12 |
237 |
Sep-12 |
238 |
Oct-12 |
241 |
Nov-12 |
243 |
Dec-12 |
245 |
Average |
232.66 |
(November and December indexes are not actuals, based only on average for calculation purposes)
Dearness allowance (01.01.2013)=( 232.66-115.76)*100/115.76=100.009
DA (after ignoring fraction)=100 %
So Rate of DA expected from 01.01.2014 is 100 %
The rate of increase will be 10% (90% to 100%).
References
1. Railway Board letter No. PC-VI/2008/1/7/2/1, dated 26/04/2013 (RBE No: 38/2013) [2]
2. All India Consumer Price Index published on Labour Bureau, Department of Statistics website [1]
Links:
[1] http://labourbureau.nic.in/indtab.html
[2] http://indianrailwayemployee.com/circular/dearness-allowance-railway-employees-enhanced-80-01-01-2013