AICPIN (CPI-IW) Vs Dearness Allowance
Dearness Allowance is one of the more beneficial allowances for Government employees in India.
Dearness Allowance is only for Govt Employees and not for the employees working in private companies.
Dearness Allowance (DA) is revised twice in a year for CG Employees, Pensioners, and Family Pensioners. In January 2016 DA is 0% and present DA is 17% of basic pay. The minimum basic pay is Rs. 18000 and minimum pension is Rs. 9000, accordingly DA will be Rs. 3060 and Rs. 1530. So, automatically on the calculation of DA is getting more attraction amongst Govt employees and pensioners.
See also: AICPIN September 2019 – Press Release will be issued on 31.10.2019
How to calculate DA on basic salary and pension?
Dearness Allowance (DA) is calculated as the percentage declared by the Government from time to time. A particular percentage given additionally in the month of January and July every year. DA on basic salary and pension are being revised frequently. As on date, the DA percentage is 17%. The calculation of DA and DR will be as follows..
For example an employee drawing Rs. 43600 as pay scale in pay matrix level 6 and a pensioner getting Rs. 36600 in pay matrix level 10
Dearness Allowance: 43600 x 17% = Rs. 7,412
Dearness Relief: 36600 x 17% = Rs. 6,222
How to calculate DA with AICPIN
Dearness Allowance (DA) calculation formula is very simple, but we need the data for 6 months of the Consumer Price Index for Industrial Workers (AICPIN).
Additional DA Percentage = (12 Monthly Average) – 261.42) / 261.42 x 100 (ignore decimals)
DA is given in two segments which are calculated with the AICPIN from January to June and July to December. Already the first segment from January to June is over and the second segment of July to December in progress.
The statistical data of AICPIN for the month of July and August are already released by the Labour Bureau. And today, AICPIN for the month of September 2019 will be released by the Labour Bureau as per the advance release calendar.
Also read: 7th Pay Commission AICPIN
AICPIN for the month of July – 319 | |
12 Month Total | 3691 |
12 Month Average | 307.58 (3691/12) |
Increased Over 261.42 | 17.66 (307.58 – 261.42) / 261.42) * 100 |
Approximate DA% | 17 |
AICPIN for the month of August – 320 | |
12 Month Total | 3710 |
12 Month Average | 309.17 (3710/12) |
Increased Over 261.42 | 18.27 (309.17 – 261.42) / 261.42) * 100 |
Approximate DA% | 18 |
Try our simple calculator ‘Expected DA Calculator from January 2020’