If you or a member of your family works for the government, this information will be useful to you. The Dearness Allowance (DA) for central employees has received a new update. Employees’ Dearness Allowance (DA) will be increased in July, following a January increase.
If you or a member of your family works for the central government, this information will be useful to you. The Dearness Allowance (DA) for central employees has received a new update. Employees’ Dearness Allowance (DA) will be increased in July, following a January increase. If we consider inflation and the AICPI Index, the DA is expected to rise by 5%. This will be the first time that DA will increase by 5% after the year 2019.
DA is currently 34 percent.
The formula for calculating DA will change this time (in July). Employees’ DA increased from 31% to 34% after the announcement of an increase in dearness allowance in March. The next Dearness Allowance for July is currently being debated. The AICPI Index is steadily increasing. In such a case, it is expected that a new formula for calculating dearness allowance will be used.
A new formula will be used to calculate
The method of calculating Dearness Allowance has been changed by the Labor Ministry. In the base year of 2016, the Ministry made changes to Dearness Allowance (DA Calculation). A new series of Wage Rate Index (WRI-Wage Rate Index) has been released as part of this. The ministry stated that the new WRI series, with a base year of 2016=100, will replace the old series, which had a base year of 1963-65.
This is how the allowance for dearness is calculated.
Currently, the amount of dearness allowance is calculated by multiplying the current 7th Pay Commission rate of DA by the basic pay. For instance, if your DA is 34% and your basic pay is Rs 56,900, your DA is (56,900 x 34)/100. In the same way, Percentage of Dearness Allowance = Average CPI for the previous 12 months – 115.76. The resulting average will be divided by 115.76. The result will be multiplied by a factor of 100.
Calculate your pay.
The DA must be calculated on the basic salary when calculating salary according to the 7th Pay Commission. For example, if a central employee’s basic salary is Rs 25,000, his DA is calculated as 34 percent of that amount. Rs 8500 is the result of 34% of Rs 25,000. This is just an example; those who know the rest of the salary structure can figure it out as well.
What are the various types of dearness allowances?
Dearness Allowance is divided into two categories (DA). First, there is the Industrial Dearness Allowance, and then there is the Variable Dearness Allowance. Every three months, the Industrial Dearness Allowance is updated. This is for employees who work in the center’s public sector. It is calculated using the Consumer Price Index (CPI) (CPI). Every six months, the Variable Dearness Allowance is updated.
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