Wednesday, 9 November 2011

Expected D.A (Dearness Allowance) next installment

Expected D.A is being declared with effect from 01st January & 01st July every year. It is interesting to know the next installment of Dear allowance. Price hike in petrol and other essential commodities compelled us to seek what would be the next installment of D.A. Most financial sites are posting articles about Dearness allowance and related matters. A 5% hike of Dearness Allowance gives an average hike of Rs. 1000 in monthly salary and this is more than the annual increment of a large portion of Government Employees.


Now a days the D.A hike is more than 5% every time. In this scenario each government employee must seek how to calculate D.A. Here we explain how to calculate the every time and it is helpful to know the next Dearness Allowance.


The Dearness Allowance is calculated on the basis of All India Consumer Price Index Number (AICPIN) for Industrial Workers. The sixth pay commission was introduced with effect from 01st January, 2006. The AICPIN for Industrial Workers for December, 2005 (based on 2001=100) was 118.7905. This was converted from the AICPIN on December, 2005 (based on 1982=100) which was 550 points.  (550/4.63 = 118.7905)


Now the New D.A is calculating every time by the percentage of the difference of Average AICPIN for Industrial Workers for the last 12 months divided by 115.77 (115.77 is the average AICPIN for the last 12 months based on 2001=100). And the merged D.A on 01.01.2006 was 100. (115.77/115.77 x 100).


So every time the D.A is calculated by deducting 100 (D.A of 01.01.2006) from the percentage of Average AICPIN (IW) for the last 12 months divided by 115.77.




The DA Calculation for the last few months are shown below




















































































































Months



AICPIN(IW)



Average



%



100



Jul-10



178



AICPIN



Difference



D.A of



Aug-10



178



for  last



of



01.01.2006



Sep-10



179



12 Months



Average



Deducted



Oct-10



181



AICPIN



ie



Nov-10



182



Divided by



D.A for



Dec-10



185



115.77



the



Jan-11



188



Month



Feb-11



185



Mar-11



185



Apr-11



186



May-11



187



Jun-11



189



183.58



158.5730327



58



Jul-11



193



184.83



159.6527598



59



Aug-11



194



186.17



160.8102272



60



Sep-11



197



187.67



162.1058996



62














Oct-11



198



189.08



163.3238317



63

















Nov-11



199



190.50



164.5504017



64














Dec-11



197



191.50



165.4142



65














Jan-12



198



192.333



166.134



66














Feb-12



199



193.5



167.1417



67














Mar-12



201



194.8



168.29



68














Apr-12



205



196.4



169.66



70














May-12



206



198



171.03



71














June-12



208



199.6



172.39



72














July-12



212



201.16



173.76



74




DA Calculation is simple as deducting 100 from the percentage of Average AICPIN (IW) for the last 12 months divided by 115.77.


With the above mentioned formula a government employee can calculate the Dearness Allowance every time. Only thing is that they should know the AICPIN for every month which will be published on the last working day of the next month. We, Investment Money also will try to update the above-mentioned chart every time the AICPIN (IW) is published.


Related Posts


Expected D.A for Central Government Employees is 6%


Expected D.A from July 2011




Enhanced by Zemanta

12 comments :

  1. It is really great to know the possible changes of DA every month. Great post. Can we expect 10% D.A this time from January 2012.

    ReplyDelete
  2. It is really great to know the possible changes of DA every month. Great post. Can we expect 10% D.A this time from January 2012. We are expected more relief.

    ReplyDelete
  3. For arriving 68 % DA (10% increase) the AICPIN for next two months (NOV & DEC) by 10 point each. It is not possible. So the next DA (DA from Jan 2012) will be 65% or 66%.

    ReplyDelete
  4. In the month of September and October, the inflation rates of day to day utilities were unexpectedly very high. but now it is under control. so 65 percent of D.A seems to genuine. but if the rates are stable and not to be rised.

    ReplyDelete
  5. as per actual rates prevailing in market of essential commodities, the expected enhancement DA as 7% is not sufficient, it should be atleast 10%.

    ReplyDelete
  6. D A sanctioned for the loss of basic pay due to inflation so its a compensatory allowance so why this is taxable under income tax. it must be exempted raise your voice.

    ReplyDelete
  7. 7% is not bad, but it is not good.




    macson m.

    ReplyDelete
  8. [...] Expected D.A (Dearness Allowance) next installment [...]

    ReplyDelete
  9. [...] 14% D.A Increase To Kerala Government Employees Expected D.A hike on the next D.A installment [...]

    ReplyDelete
  10. [...] For Calculating Dearness allowance to Central Government Employees AICPIN (IW) is considered with the expectation that an increasing in Consumer Price Index increase the cost of living of the people. So Dearness allowance is changing accordingly. See the changes in D.A in each months AICPIN(IW) [...]

    ReplyDelete
  11. [...] The Calculation of Dearness Allowance is as per the changes of AICPIN (IW) (All India Consumer Price Index Number for Industrial Workers. See how the calculation is made. [...]

    ReplyDelete
  12. [...] 01st July, 2012. Last time from 01sat January, 2012 also the D.A hike was 7%. The D.A hike is calculated New D.A increase from July 2012 is 7% and the Total D.A is [...]

    ReplyDelete