How to calculate DA on Salary? and How to calculate DA on Pension?
How to Calculate DA and Arrears for Govt Employees?
VDA (Variable Dearness Allowance) is not applicable to Central Govt Employees. Variable Dearness Allowance is different from Dearness Allowance
What is DA in salary?
The DA (Dearness Allowance) is the major element in the salary structure of Government employees. This increment is given twice in a year for compensating the price of essential commodities.
How to calculate Dearness Allowance (DA) in Salary?
DA calculation is very simple. The current rate of Dearness allowance multiply with your basic salary is Dearness allowance. For example, the existing rate of percentage is 12%, if your basic salary is Rs. 49000. The DA is (49000 x 12) /100. Check your status of DA on basic salary:
How to Calculate DA and DR Percentage of CG Employees and Pensioners?
Every six months the Government of India has declared a particular percentage of DA and DR for its employees and pensioners for tackling the price hike in essential commodities. If you want to calculate the percentage of DA and DR for a particular month, you need the Consumer Price Index (AICPIN) for 12 months of previous months’ data.
If you want to calculate the exact percentage of ‘DA from January’ or ‘DA from July’ of any year, you have to know the 18 months of previous AICPIN data. For example, if you want to know the DA percentage of September 2019, you need the AICPIN data from the month of October 2018 to September 2019. The percentage will be an effect from October 2019.
All India Consumer Price Index (AICPIN)
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)
Check also: 7th Pay Commission DA Chart
For example, If we calculate the DA for the month of January 2018, we need 12 months of AICPIN data from January 2017 to December 2017. Now see the table, how da is calculated:
|Month / Year||AICPIN|
|Total of 12 Months of AICPIN||3374|
|Average of 12 Months of AICPIN||281.17|
|DA Fitment (Linking) Factor (261.42)||7.55|
|DA for the month of January 2018||7%|
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
DA from January 2018: 6th CPC DA from Jan 2018 is 142% and 6th CPC DA from July 2018 is 148%
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 (3648/12)|
|Increased Over 261.42||16.29 (304.00-261.42) / 261.42) * 100|
Also check: DA Rates from 1986 to 2015
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.
What is the meaning of ‘DA Freeze’?
The meaning of ‘Freezing of DA’ (Freezing of Dearness Allowance) is just stopped for some time. Once in six months, a particular percentage of Dearness Allowance is being granted additionally to CG Employees and Pensioners. This DA increment has stopped temporarily for 18 months from 1st January 2020 to 30th June 2021. [Click to know more]
Basic + DA Calculation Sheet
Basic plus DA (Dearness Allowance) Calculation Sheet:
|Pay Matrix Level||Basic Salary||17% DA|
|Pay Level -1||18000||Rs. 3,060|
|Pay Level -2||19900||Rs. 3,383|
|Pay Level -3||21700||Rs. 3,689|
|Pay Level -4||25500||Rs. 4,335|
|Pay Level -5||29200||Rs. 4,964|
|Pay Level -6||35400||Rs. 6,018|
|Pay Level -7||44900||Rs. 7,633|
|Pay Level -8||47600||Rs. 8,092|
|Pay Level -9||53100||Rs. 9,027|
|Pay Level -10||56100||Rs. 9,537|
|Pay Level -11||67700||Rs. 11,509|
|Pay Level -12||78800||Rs. 13,396|
DA Loss Calculation for CG Employees
17% fixed DA for 18 months from January 2020 to June 2021 for Central Government Employees and Pensioners [Click to read more]
DR (Dearness Relief) Loss Pension Calculator for Govt Pensioners
After implemented an important order issued by the Finance Ministry under the title of “Freezing of Dearness Allowance and Dearness Relief” on 23rd April 2020, all Central Government pensioners including Railways are wishing to know their total contribution to the Govt. [Click to read full story]
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.
- Read: Click to view the 6th CPC DA Table from 2006 to 2015
- Read: Click to view 7th CPC DA Table
- Read: Click to view the 6th CPC DA Table
- Read: 7th CPC Pay Scale Calculator from 1.1.2016
- Read: How is da calculated for bank employees?
Top Developments on 7th CPC DA Calculation
Latest News on DA and DR:
- 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…
List of Latest Salary and DA Calculator for CG Employees:
- 7th Pay Commission Pay Scale Calculator
- 7th Pay Commission Salary Calculator Updated Oct 2019
- 7th CPC Pay Fixation on Promotion MACP Calculator
- Expected DA from January 2020 Calculator
- Expected DA from July 2020 Calculator with AICPIN
- DA Loss Calculation for CG Employees
- DR (Dearness Relief) Loss in Pension Calculator for Govt Pensioners
- How to Calculate Basic Salary in India?
- Expected DA Calculator for Bank Employees from August 2020
- Expected DA Calculator from Jan 2021
- Expected DA Calculator from July 2021
- Leave encashment Calculator for CG Employees