How to Calculate DA and Arrears for Govt Employees
How to calculate DA?: DA calculation is very simple. But, we need the CPI for six months for additional DA from January to June and July to December.
Dearness allowance is calculated based on All India Consumer Price Index for Industrial Workers Base Year 2001=100. The index has been released by the Labour Bureau for every month.
6th CPC DA Percentage = (12 Monthly Average – 115.76) / 115.76 x 100 (ignore decimals)
7th CPC DA Percentage = (12 Monthly Average) – 261.42) / 261.42 x 100(ignore decimals)
How to Calculate DA on Basic Pension for Central Government Pensioners
Dearness Allowance (DA) is the same meaning for Dearness Relief (DR). But the DA is applicable for existing government employees and the DR is applicable for retired government employees (pensioners).
DA is calculated based on their basic salary and the DR is calculated based on their basic pension. For example, if an employee’s basic salary is 18000 and if a pensioner’s basic pension is 9000, then the calculation of DA and DR will be as follows:
- Basic Salary: 18000 x 21% = 3780
- Basic Pension: 9000 x 21% = 1890
How to Calculate DA for Defence Personnel
The calculation of DA is same for Defence Forces Personnel at par with Central Government Employees. But the order will be issued by the concern ministry.
DA Calculation with example
| DA Calculation for May 2019 | |
| AICPIN 314 Points | |
| 12 Month Total | 3648 (291 + 301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314) |
| 12 Month Average | 304.00 (3623/12) |
| Increased Over 261.42 | 16.29 (301.92-261.42) / 261.42) * 100 |
| Approximate DA% | 16 |
What is difference between DA and DR?
Dearness allowance and Dearness allowance, both are same, but DA is granting for existing Central Government employees and DR is granting for retired Central Government employees. DA for existing CG employees and DR for CG Pensioners.
7TH CPC PAY SCALE CALCULATOR FROM 1.1.2016
What are the 7th CPC’s Recommendations Regarding Dearness Allowance?
Dearness Allowance is one of the important issues that the Pay Commission deals with.
The calculation method that was recommended by the 6th Pay Commission was radically different from the ones suggested by all the previous Pay Commissions.
Dearness Allowance, which was increasing by 1 or 2% until the 5th Pay Commission suddenly shot up to double-digit numbers. Until the 5th CPC, the All India Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. From the 6th Pay Commission onwards, CPI (IW) 2001 = 100 was used for calculating the DA.
There was another crucial change that the 6th CPC made. it recommended that the Reference Base Index be changed from 306.33. As a result, 115.76 became the new Reference Base Index from 01.01.2006 onwards.
The report says…
The Commission assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay.
The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers).
The JCM-Staff Side has suggested that the existing formula for the calculation of DA may continue.
Analysis and Recommendations
The VI CPC had recommended that the National Statistical Commission may be asked to explore the possibility of a specific survey covering government employees exclusively, so as to construct a consumption basked representative of government employees and formulate a separate index. This has, however, not been done.
Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.
The prices of all items have been sourced from Labor Bureau, Shimla. These prices are used in the calculation of the CPI (IW) and subsequently the calculation of Dearness Allowance. In the current exercise the prices of all items are for the period July 2014-June 2015 and have been used in the calculation of DA at 119 percent operative from 01.07.2015.
Click to view the 6th CPC DA Table from 2006 to 2015
Click to view 7th CPC DA Table
Click to view the 6th CPC DA Table
Top Developments on 7th CPC DA Calculation
- DA Orders for bank employees from August to October 2019 under 10th BPS August 19, 2019 Read more…
- What percentage of DA will increase from July 2019? July 5, 2019 Read more…
- 7th CPC DA Calculation Sheet July 3, 2019 Read more…
- DA Calculation Table: Easy 7 Steps to calculate additional DA June 29, 2019 Read more…
- AICPIN May 2019 Two Points Increase – Expected DA Fixed at Next Level June 29, 2019 Read more…
- Dearness Allowance to Telangana Govt Employees June 17, 2019 Read more…
- 7th Pay Commission DA Table for CG Employees June 12, 2019 Read more…
- 7th Pay Commission DA Calculation with AICPIN Table June 4, 2019 Read more…
- Enhanced Rates of DA for TN Govt Employees, Pensioners and Family Pensioners May 21, 2019 Read more…
- IBA Orders on DA : Increase in DA Slabs of 34 – 64.50 % May to July 2019 May 4, 2019 Read more…
- 12% DA to Railway Employees – Revised Rates Effective from Jan 2019 March 15, 2019 Read more…
- 12% DA Order for Armed Forces Officers and PBOR including NCs(E) – MOD Orders March 15, 2019 Read more…
- 5th CPC DA Orders – 295% DA from Jan 2019 March 12, 2019 Read more…
- 6th CPC DA Orders – 154% DA from Jan 2019 March 12, 2019 Read more…
- 12% DA Orders for CPSE Employees March 6, 2019 Read more…
- 7th CPC DA Order from 1.1.2019 February 27, 2019 Read more…
- DA Hike for Rajasthan Govt Employees and Pensioners February 25, 2019 Read more…
- 12% DA from Jan 2019 for CG Employees – Cabinet Approved February 19, 2019 Read more…
- Latest DA Table for Bank Employees February 16, 2019 Read more…
- DA to Bank Employees from Feb 2019 February 9, 2019 Read more…
I was on TD from April 2017 to September 2017. I have been paid ta/da as per old rule/rate for whole period of TD and I had to bear loss of rs 50000 approx. Whether I am entitled for new rate we 01/07/2017 or not. Pl advice. I am a paramilitary staff.
According to DA is worked out as 10% of basic pay from July 2018 but the order says it is 9%. I am not quite convinced how reduction of 1% resulted?