How to calculate expected DA for Central Government Employees for July 2019; DA calculation formula
New Delhi, Aug 02: Expected DA or Dearness Allowance for July 2019 can be calculated using a simple formula. The DA calculation formula takes into account average factor of AICPN or All India Consumer Price Index.
DA is a variable component in a government employee's salary which changes according to inflation or Consumer Price Index.
The calculation method of Dearness allowance has not changed since the implementation of 7th Pay Commission which came into effect from January 1, 2019. What, however, changes is 12 months average factor.
In 6th Central Pay Commission, the average factor was 115.76 and now the factor is 261.42, reported www.centralgovernmentnews.com.
The DA calculation formula is: Percentage of Dearness Allowance = (Average of AICPN for last 12 months) - 261.42 x 100 / 261.42.
Ministry of Labour and Employment releases All India Consumer Price Index (AICPIN). Now, since it keeps varying, a 12 months average factor is taken for DA calculation.
When will DA be finalised what is the DA calculation method:
AICPN for five months from January 2019 to May 2019 has been released. June 2019 inflation figure would be needed to complete the calculation of additional DA percentage from July 2019.Once the AICPIN for the month of June 2019 is released, the DA will be finalized.
AICPIN for January to May 2019:
For January 2019 AICPIN was 307, February 2019 AICPIN was 307, March 2019 AICPIN was 309,April 2019 AICPIN was 312 and May 2019 AICPIN was 314.
The DA calculation formula: Percentage of Dearness Allowance = (Average of AICPN for last 12 months) - 261.42 x 100 / 261.42.
What is Dearness Allowance (DA):
The basic premise behind DA is that as the prices go up due to inflation and purchasing power of the Rupee comes down, a government employee needs to be compensated. The Dearness Allowance is proportional to the rise in market prices of commodities.
Government employees were expecting an increase in their dearness allowance (DA) by four percent in July 2019 to reach up to 16 percent. If the allowance hike is implemented, it will be the biggest increase in the DA since the implementation of the 7th pay scale in 2016.