The expected Dearness Allowance (DA) from January 2023 for Central Government employees can be calculated using the DA calculator. This calculator takes into account the Consumer Price Index (CPI) of the preceding 12 months and the existing DA rate to determine the expected DA rate from January 2023. For example, if the AICPIN of the preceding 12 months is 4% and the existing DA rate is 38%, then the expected DA rate from January 2023 would be 42%. It is important to note that the expected DA rate from January 2023 may be subject to change depending on the CPI of the preceding 12 months.
According to statistics from the All India Consumer Price Index Number (AICPIN), the percentage of Dearness Allowance is calculated every month. This allowance is then granted to Central government employees, pensioners, and family pensioners twice a year, after six-month intervals. For instance, the calculation of DA from January 2023 will be based on the AICPIN for December (assuming it to be 132.5).
|Month/Year||AICPIN 2016=100||AICPIN 2001=100||12 Months Total||12 Months Average||DA%|
Industrial Dearness Allowance (IDA) is provided to employees of Central Public Sector units. IDA is calculated quarterly, with four measurement periods throughout the year (January to March, April to June, July to September, and October to December). The rate of IDA is based on the All India Consumer Price Index (AICPIN), with a base index of 126.33. The formula for calculating IDA is as follows:
IDA Rate = [(Average CPI – Base Index) x 100 / Base Index]
For example, the calculation of IDA rates from January 2023 for BSNL employees is as follows;
|Month||AICPIN||DA (2007 Pay Scale)|
The Dearness Allowance payable to bank employees, pensioners, and family pensioners is determined in accordance with the 11th bipartite settlement between bank unions and the Indian Bank’s Association, which was signed on November 11, 2020. The percentage of Bank DA is calculated based on the All India Consumer Price Index (AICPIN), released monthly by the Labor Bureau. The DA is revised quarterly, following the Bank DA Calculation and Formula for bankers, as outlined below:
1. February, March, and April
2. May, June, and July
3. August, September, and October
4. November, December, and January
The CPI is converted using conversion factors 4.63 and 4.93 to link the same to the base year 1960.
Also Check: Central Government Pay Matrix Table 2022 PDF
Umesha M says
Very informative. Please include me in your mailing list.