We have calculated  the expected DA(dearness allowance ) wef 01.07.2012 (July,2012) and we have also explained that How DA can be estimated/calculated ?.DA for 01.04.2012 has already been declared at 65 %.. As the AICPI (index) for June 2012 is also available now . The calculation given below is confirmed and now it is only  formality from the govt to declare DA(dearness allowance ) wef 01.07.2012 to 72 %. Details is given below.

DA(dearness allowance rates are fixed on the basic of All India Consumer Price Index for industrial workers.Base year has been taken as 2001. This new DA rate system is adopted by Central and State Govts and public sector Under takings from 01.01.2006 with new pay scale as declared by the Pay commission . DA rates are to be announced half yearly basis and applicable from first of January and First of July.

Update (24.09.2012)
DA for Central Government Employees
The Union Cabinet today(24.09.2012) approved to release additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2012, representing an increase of 7 per cent over the existing rate of 65 per cent of the Basic Pay/Pension, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs.7408.24 crore per annum and Rs. 4938.78 crore in the financial year 2012-2013 i.e. for a period of 8 months from July, 2012 to February, 2013.

Also Read :Expected Dearness allowance(DA) Rate wef January,2013 (01.01.2013)

How to calculate Dearness Allowance from the year 2006:It is very simple ,suppose if you want to calculate Dearness Allowance with effect from Jan-12, get the average of monthly All India Consumer Price Index for industrial workers with the base year 2001=100 for the preceding 12 months and apply the same in the following formula

Dearness Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76

(ignore fractions)

Here 115.76 means average of price index from Jan 2005 to Dec 2005.

So to calculate July 2012 DA rate (to be announced) we need Price index average from July 2011 to June 2012.As per Labour Bureau, Department Statistics, Government of India website index for July 2011 to  June 2012 has already been declared . So from the calculation given below .It is confirmed that Da wef 01.07.2012 will be 72 % (i.e increase of 7 % from 01.01.2012 )

AICPI data for July 2011 to June ,2012

 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 total AVG 193 194 197 198 199 197 198 199 201 205 206 208 2396 199.58

Calculation of Dearness rate Increase from July 2012 remains the same i.e 7 % and new dearness allowance from 01.07.2012 will be declared at 72 %.(100% sure)

On the Basis of The assumption the calculation is given as under.

Dearness allowance (01.07.2012)=(199.58-115.76)*100/115.76=72.41 (ignore fraction)=72 %

so  DA rate from 01.07.2012 to be fixed at 72 % which is a increase of 7 % from previous rate of 65 % .

Note:DA rate Jan 2012 has been approved by the Cabinet.(read here) on 23.03.2012
Tags: expected da from july 2012, Dearness allowance wef 01.07.2012, july da rate , tentative da rate from july , new da installment , new rate of da , 7 % increase in da from july 2012, da 07/12, da 7/2012

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