Expected DA from January 2021
A simple DA Calculator is provided to find the DA from January 2021 with inputs of expected AICPIN for the required months.
Freezing of DA from Jan 2020 to June 2021
The union cabinet had hiked the dearness allowance by 4 per cent from the existing 17 per cent to 21 per cent. It was then kept on hold due to the COVID-19 pandemic in the country. The Central Government announced the hike in DA and DR had frozen along with the future instalments for central government employees and pensioners till July 2021 due to COVID-19.
How to Calculate DA from January 2021
Now let’s have a look at how Dearness Allowance is calculated based on (2015-100)
DA calculation formula:
Percentage of Dearness allowance = (Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015)
Recently the government announced the new series of CPI for industrial workers (CPI-IW) with a new base year of (2016-100). This will be used to calculate DA from September onwards.
Expected DA from January 2021 is 28%
Due to rising the cost of living, this DA hike is very important. DA for the month of July 2020 increased by 3 points, So DA confirmed to 24%. If expected DA for the month of Jan 2021 approximately increased by 4%, then DA hike may go up to 28%. DA payment will be done twice a year based on the CPI-IW inflation usually January and July. The DA, a component of salary, is revised every six months to keep pace with the inflation rate. According to the new calculation method Central government employees hope that DA will increase step by step due to the increase in inflation. From Jan 2021 to July approximately DA may increase by 4% then the Hike of DA confirm up to 32% definitely. These changes are going to significantly benefit all the employees and pensioners of the Central Government.
| Current Rate of DA % is | 17% |
| Hike in DA as on January 2020 is 4% (17%+4%) | 21% |
| Hike in DA as on July 2020 DA is 3% (21+3) | 24% |
| Approximately expected Hike in DA for the month of January 2021 is 4% (24% +4%) | 28%* |
| Approximately expected Hike in DA for the month of July 2021 is 4% (28%+4%) | 32%* |
Impact on DA from Jan 2021 with a new base year of (2016-100)
The government recently launched the new series of CPI for industrial workers (CPI-IW) with a new base year of 2016. This is used for tracking inflation and for fixing dearness allowance (DA) of employees and industrial workers.
The important improvements made under the new series of CPI-IW (2016=100) vis-à-vis old series (2001=100)which are as under:
- A total of 88 centers have been covered in the 2016 series as against 78 centers in the 2001 series.
- The sample size for the conduct of Working Class Family Income and Expenditure Survey, on the basis of which weighting diagrams have been derived, was increased to 48384 families from 41040 in the 2001 series.
- The number of selected markets for collection of retail price data has also been increased to 317 markets under the 2016 series as against 289 markets covered in the 2001 series.
- The number of items directly retained in the index basket has increased to 463 items as against 392 items in the 2001 series.
- The number of States/UTs has increased to 28 under 2016 series as against 25 in the 2001 series.
- In the new series, as per the direction of Technical Advisory Committee (TAC) on Statistics of Prices and Cost of Living (SPCL), the Geometric mean based methodology (GM of Price Relatives) is used for compilation of indices as against arithmetic mean used in 2001 series.
Currently, this new series of CPI does not make any impact on DA. The benefit of new price index will impact only after few months and will bring increase gradually in Dearness allowance, including pensioners as well. Upcoming months we can expect AICPIN value will be much better.
Expected DA from Jan 2021 with new series of CPI(IW) 2016-100 based DA calculation .
Mkk says
N
Iavenkatakrishnan says
Govt servent were cheerful for getting the da in night dreamt only
Bhupendra Jangir says
Guys…. You are all cheated by the government.. The new introduced linking factor 2.88 is the key factor for all this..!
This linking factor should be 2.61 instead of 2.88. According to new base year(2016=100), present cpi numbers, DA wef January 2021 will be around 17-18% which is similar to the july 2019 DA..
Mkk says
Explain as per your calculation in details.
Virender Kumar says
what will be the expected D A w.e.f July 2021
Bhupendra Jangir says
Nearly 21-22%..!!
Gautam Sengupta says
New formula to be in operations for only from January 2021. CPI from September 2020 with Index point merger comes to 118 .Thier are various formula is adopted to arrive at payable DA to PSU and Banks employees taking three months index points . Where as Central government employees six months Index points. So CG employees DA on January 20210 wii be nil Upto July 2020 DA is, 24 percent and in July 2021 it will be 27percnt only and real hike will be onwards for example it wii be 2+5 or3+4 for next immediate next two half year In others words January 2022 and July will be in the ratio of 2+5or3+4
Anonymous says
33%
Anonymous says
May be 26% – 28%.
rob says
better chance the government,the present government has no support over the government employess.
Nitya Nand Singh says
Base value 261.42 to be divided by 2.88…You will get 90.77 as new base value… Now you need to link all aicpin by 2.88 from Jan, 20 to Aug, 20
Gautam Sengupta says
DA on January 2021 will be zero. Before you will get 24percnt DA upto July2020. After math next payable DA as on July 2021 will be 26=percent And moving index may touch 29 percent DA on January 2022 after that average yearly DA will likely, 5percent
G sen says
Brother my calculation from January2020😄21percent 😁24from July 2020.zero DAon January 2021and from July 26percnt from January 2022 it will be 28percnt and July 2022 it will be 31percent
Vijayakumar says
Kindly post DA Calculation Formula
Gautam Sengupta says
DA calculations formula is simple and straight. Last 12months average index likely to be 116. 34 which will be denominator. The numerator will be zero for January 2021 DA on January 2021 will be zero But don’t worry for July 2021DA may touch 3percent as CPI W and CPI gap is reduced to a large scale. And present trend indicate inflation rate are too high ranging from 5.83to 7.32
Col B N Sharma says
What is DA expected from Jan 21 as per the new base year 2016.
M.K.KUMAR says
It will be decided March/April, 2021. But it will not be to given since it was freezed up to 30-6-2021. Expected also decided after December 2020.
Amit kumar says
28 percent
Arun Kumar says
Expected DA from Jan 2021 is 4% and total DA will be 28%
sunil dutt says
what will be DA in july 2021 is it consolidate or only 4%.
M.K.KUMAR says
Consolidated as at 1-7-2021. But no arrears.
KN Katyal says
Is there any formula for calculating DA wrt base year 2016 finalised. It will certainly reduce the DA compare to 2001 base year. I doubt Govt will make any arrears of DA till Jul 2021..
M.K.KUMAR says
As per the O.M. no arrears will be to but D.A./D.R.will be considered total consolidated as on 1-7-2021.
Dilbagh Rai says
Here I would like to know whether the government will pay. all the instalments is da due from January 2020 to July 2021 , or they will pay only the instalment due from July 2021? I doubt because BJP has always been against the welfare of employees and labourers.
M.K.KUMAR says
Arrears will not be paid as per O.M. D.A./D.R. & percentage may change to reduce as per the new base year (2016-100) from January 2021.
Prakash Chandra says
Keeping 2016 as base year, the DA from January 2021 is coming to 28%. This is as per the AICIPIN of October 2020 (119). But the matter is, whether Government will pay this is another issue. In such crisis periods (like it also happened after 1965 and 1971 wars) usually many instalments of the DA are cancelled.
Now what we can do is just wait and watch.
M.K.KUMAR says
Further to inform you that due to change of AICPIN new base year (2016-100) D.A./D.R. percentage may reduce.
[email protected] says
Please intimate index of year 2016 and 2001 which is beneficial for calculating of Da please reply
Anonymous says
New d a calculation formula base year 2016
RAGHUVIR MITTAL says
PL.INTIMATE THE DA DUE CALCULATED ON THE BASIS OF NEW AICPIN BASE YEAR 2016