7th CPC DA Calculation – Important factor of AICPI (IW) BY 2001 continue or not..?

New Picture (11)7th CPC DA Calculation – Important factor of AICPI (IW) BY 2001 continue or not..?

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 the peak of double-digit numbers.

Until the 5th CPC, the 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.

Will the 7th CPC introduce a new CPI (IW)? Or will it bring about changes in the Reference Base Index?

This is something that everybody wants to know.

Just watch the difference between 5th and 6th CPC DA Calculation methods…

Click to continue…


Expected DA from Jan 2015 – Comparison of DA Calculation from 2006 to 2014

Expected DA from Jan 2015 – AICPIN Points for September Released – Remains Unchanged at 253


One of the most important department functioning under the Central Government is the Labour Bureau. The department releases a number of important statistics and conducts surveys. In the year 1872, the department had successfully conducted the population census of the entire country. This census gave not only the count of number of persons, but also the number of gainfully employed. Since then every census has thrown useful data on workers in different industries and occupations every 10 years. The bureau also releases official information, economic indicators like Consumer Price Index Numbers for Industrial, Agricultural and Rural Labourers; wage rate indices and data on industrial relations etc. that are followed by a number of government departments.

One such indicator is the monthly Consumer Price Index Numbers (Industrial Workers 2001=100), which is used to calculate the Dearness Allowance for Central Government employees. Prices of 24 essential commodities (from rice to bathing soap) are observed in 78 cities all over the country in order to calculate the average index of CPI(IW).

It is based on these statistics that, once every six months, the Centre announces Dearness Allowance for its employees. Based on the AICPIN(All India Consumer Price Index Numbers) between January and June, and between July and December, the Finance Ministry decides the percentage of hike in Dearness allowance and Dearness Relief according to the recommendations of 6th CPC and informs the Government. The Centre makes its decision after discussing the recommendation during the cabinet meeting.

Now, ‘Expected DA from Jan 2015′ is the first installment of next year and only three months’ data have been collected as of now, for the Dearness Allowance. Accurate D.A percentage can be calculated only after the remaining 3 months’ AICPIN points are announced.

But, we believe that based on October’s AICPIN points, we can conclude if the next D.A hike is going to be for 6% or 7%.

The Dearness Allowance announcements since 2006 have been tabulated and presented, as additional information.

Year wise DA Calculation tables form 2006 to 2014…

DA Calculation for Jan 2006 DA Calculation for Jul 2006
DA Calculation for Jan 2007 DA Calculation for Jul 2007
DA Calculation for Jan 2008 DA Calculation for Jul 2008
DA Calculation for Jan 2009 DA Calculation for Jul 2009
DA Calculation for Jan 2010 DA Calculation for Jul 2010
DA Calculation for Jan 2011 DA Calculation for Jul 2011
DA Calculation for Jan 2012 DA Calculation for Jul 2012
DA Calculation for Jan 2013 DA Calculation for Jul 2013
DA Calculation for Jan 2014 DA Calculation for Jul 2014

7% DA for TN State Government Employees

7% DA for TN State Government Employees

An another announcement of hiking in Dearness allowance to the employees of State Government of Tamil Nadu today.

Tamilnadu Chief Minister announces an additional DA to state employees from 1.7.2014.

More than eighteen lakh state government employees will get the hike, which is effective from 1.7.2014. The arrears for three months will be paid in cash. The Tamilnadu Chief Minister Pannerselvam announced the hike of DA today.

Following the Central Government, the state government has declared DA to its employees from the existing rate of 100% to 107% with effect from 1.7.2014.

Click to view the Government Order…

DA Announcement for TN Government Staff Awaited…

DA Announcement for TN Government Staff Awaited…

On September 18, 2014, the Ministry of Finance announced that the Central Government employees were to get Dearness Allowance of 7% from July onwards. Following the announcement, various state governments too have been announcing Dearness Allowance of 7% to its staff. (Rajasthan Government DA Order & Karnataka Government DA Order)

It is a well known fact that the Tamil Nadu state government is in a crisis following the conviction of J. Jayalalithaa in the disproportionate assets case. O. Paneerselvam has been chosen as the new Chief Minister of the state.

More than 18 lakh state government employees, pensioners and their dependents are eagerly waiting for the Dearness Allowance announcement from the new Chief Minister. They are wondering if the new government would grant the arrears and release the Government Order before Diwali this year.

Let us hope that the new Chief Minister makes their dreams come true on the occasion of Diwali and announces a 7% DA this time.

Source: Employeesnews.net

DA Rates from 200% to 212% for 5th CPC Employees

DA Rates from 200% to 212% for 5th CPC Employees

Rates of Dearness Allowance applicable w.e.f. 1.7.2014 to the employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised scale as per 5th CPC

F. No. 1/3/2008-E.II (B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated: 21th September, 2014.


Subject:- Rates of Dearness Allowance applicable w.e.f. 1.7.2014 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised scale as per 5th Central Pay Commission.

The undersigned is directed to refer to this Department’s Office Memorandum of even No. dated 22nd April, 2014 revising the rates of Dearness Allowance in respect of employees of Central Government and Central Autonomous Bodies who continue to draw their pay and allowances in the pre-revised scales of pay as per 5th Central Pay Commission.

2. The rates of Dearness Allowance admissible to the above categories of employees of Central Government and Central Autonomous Bodies shall be enhanced from the existing rate of 200% to 212% w.e.f. 1.7.2014. All other conditions as laid down in the D.M. of even number dated 3rd October, 2008 will continue to apply.

3. The contents of this Office Memorandum may also be brought to the notice of the organizations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

(A.Bhattacharya harya)
Under Secretary to the Govt. of India

Source: www.finmin.nic.in