Tuesday, January 1, 2013

EXPECTED DA RATE WEF JANUARY 2013 WILL BE 8 % :CONFIRMED


on Tuesday, January 1, 2013

We have calculated the expected DA(dearness allowance ) wef 01.01.2013 (January,2013) and this is not a pure guess work  but based on facts  and figures and we have also explained these facts and figures in details so that you can also understand how we have estimated the DA Rate wef January ,2013(01.01.2013) ?.

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 Governments  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.

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-13, 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

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 Estimated DA rate wef January,2013 (01.01.2013), we need Price index average from January, 2012 to December,2012.

As per Labour Bureau, Department Statistics, Government of India website index for January 2012 to  November ,2012 has already been declared .

However Price Index from  December,2012 is yet to be declared and we expect it 219/220/221.In all three situations the DA rate remains same  i.e 80%(increase 8 % from old rate of 72%).However in case 4 ,If December Index increased 222  then DA for January 2012 will be 81 %, which is now very unlikely. 

So to estimate the DA rates wef January ,2013 we have estimated the Price Index from  December 2012. 

e have calculated 4 possible equation/ Estimates ,which is shown in the picture below.

Case-1 
In First case we have assumed Price index starting of December 2012 to 219 , In case-2 =220 in case -3=221.

On the Basis of The assumption the total of price index from January 2012 to December 2012 will be 2512,2513,2514 and Avg for Last 12 months will be 209.33,209.42,209.50 respectively .The calculation for dearness allowance (DA) wef January ,2013 is given as under.

Dearness allowance (01.01.2013)=(209.33-115.76)*100/115.76= 80.83%(ignore fraction)=80 %
Case-2

Dearness allowance (01.01.2013)=(209.42-115.76)*100/115.76= 80.91%(ignore fraction)=80 %

Case-3

Dearness allowance (01.01.2013)=(209.50-115.76)*100/115.76= 80.93%(ignore fraction)=80 %

From above three calculations  ,it is very much clear  that DA will be declared at 80% wef 01.01.2013  that is a Increase of  09 % from 72 % (wef 01.07.2012)

Case-4

In Forth case we have added four each month in price index starting from September,2012 to December 2012. Though we think price index will be lesser that this.

On the Basis of The assumption the total of price index from January 2012 to December 2012 will be 2527 and Avg for Last 12 months will be 210.58 .The calculation for dearness allowance (DA) wef January ,2013 is given as under.

Dearness allowance (01.01.2013)=(211.58-115.76)*100/115.76=81.91%(ignore fraction)=81%

The above calculation assures us that  DA will be declared at 81% wef 01.01.2013  that is a Increase of  9  % from 72 % (wef 01.07.2012)


Conclusion :Expected DA with effect from January ,2013 to be 80% (01.01.2013) 

From the above calculation most likely case will be Case -1,case-2 and Case-3 and in all these cases ,answer remain the same i.e 80% ( Increase of 8% from old DA rate of 72 % wef 01.07.2012)

and case-4 can be rejected due to higher projection.
Please Comment about our above calculation and Record your estimated Price Index from 8/2012 to 12/2012 or sum total of price index 1/2012 to 12/2012 and DA rate wef 1/2013.

Tags: expected da from January,2013, Dearness allowance wef 01.01.2013, January 2013 da rate , tentative da rate from january,2013 , new da installment , new rate of da , 10% increase in da from  January 2012, da 0/2013, da 1/2012, Dearness allowance for Central govt employees ,January 2013(01.01.13)
Updated :01.01.2013

Happy New Year 2013 to all Simple Tax India Viewers

6 comments: Post Yours! Read Comment Policy ▼
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  1. GOVT.SERVANTS have become demanding PUBLIC MASTERS.
    The PEOPLE OF india have to FORK OUT TAXES just to KEEP UP the DA and SALARIES of the GOVT.SERVANTS.
    We LOVE OUR india!

    ReplyDelete
    Replies
    1. Not all govt servants are useless, neither they are slaves, not entitled for any kind of pay raise..

      Delete
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    ReplyDelete
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    ReplyDelete
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