## Monday, July 4, 2011

 7% Rise in DA/DR for Central Government Employees/Pensioners1. For all the Central Government Employees/pensioners, there would be a rise of 7%in DA /DR to, which would result in the overall DA / DR of 58% from 1.7.2011 - as percalculations below (as per Calculation based on All India Consumer Price Index Number forIndustrial Workers (CPI-IW) on base 2001=100).2. HOW TO CALCULATE DEARNESS ALLOWANCE...Every month government has announced All India Consumer Price Index for Industrialworkers, according to the price of commodities.Month & year Price Index with base year2001 = 100July 2010 178August 2010 178September 2010 179October 2010 181November 2010 182December 2010 185Jan 2011 188Feb 2011 185March 2011 185April 2011 186May 2011 187June 2011 187 (Assumed)(considering MKT situation)Total 2201/12Average 183.4163. With effect from 01.01.2006, Dearness allowance is granted to compensate the priceincrease above 536 points Base Year 1982=100),(115.763 points Base Year 2001=100).4. The half yearly rise in DA/DR is granted on the basis of average price index of 12 monthsprior to 1st January/1stJuly5. As per above table, the total of twelve month average price index prior to July 2011=2199The twelve month average price index for the period as per above table.= 183.4166. Subtract 115.763 from 183.416which works out to 67.653 It is a rise over 115.763 as on31.12.2005 (with respect to base year 2001=100). Calculate the percentage rise by multiplying(67.653) with 100 / 115.763. It works out to 58.4417. The fraction is to be ignored. The whole number only is to be considered. So the DA/DRadmissible with effect from 1st July 2011 is 58% thus arise of 7% over 51% already being paid.8.DA/DR with effect from 1/7/11Average all India inflation index 183.416-115.763 = 67.653x100 divided by 115.76 = 58%