7% Rise in DA/DR for Central Government Employees/Pensioners w.e.f 1st July 2011

7 Percent Rise expected in DA / DR wef 1-7-2011

7% Rise in DA/DR for Central Government Employees/Pensioners  w.e.f 1st July 2011

1. For all the Central Government Employees/pensioners, there would be a rise of 7% in DA IDR to, which would result in the overall DA I DR of 58% from 1.7.2011 – as per calculations below (as per Calculation based on All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001= 100).

2. HOW TO CALCULATE DEARNESS ALLOWANCE…
Every month government has announced All India Consumer Price Index for Industrial
workers, according to the price of commodities.

Month & year                            Price Index with base year
                                                     2001 = 100
July 2010                                       178
ftugust 2010                                   178
September2010                               179
October2010                                  181
November2010                               182
December 2010                               185
Jan2011                                          188
Feb2011                                          185
March2011                                      185
priI 2011                                         186
May2011                                         187
June 2011                                        187 (Assumed)
___________________(considering MKT situation)
Total 2201112
Average 183.416
3. With effect from 01.01 .2006, Dearness allowance is granted to compensate the price increase above 536 points Base Year 1982100),(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 months prior to 1st January1stJuly

5. 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.= 183.416

6. Subtract 115.763 from 183.4l6which works out to 67.653 It is a rise over 115.763 as on
31.12.2005 (with respect to base year 2001=100). Calculate the percentage rise by multiplying
(67.653) with 100 I 115.763. It works out to 58.441

7. The fraction is to be ignored. The whole number only is to be considered. So the DAIDR
admissible with effect from l July 2011 is 58% thus a rise of 7% over 51% already being paid

8. DA/DRwef  1.7.11
Average all India inflation index 183.41 6-115.763 = 67.653×100 divided by 115.76 = 58%

Courtesy: Er. S.C.Maheshwari

source-http://www.irtsa.net