As you may aware of that 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-14, get the average of monthly All India Consumer Price Index for industrial workers with the base year 2001=100 for the preceding 12 months (Jan,13 to December,2013)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,2014 (01.01.2014), we need Price index average from January, 2013 to December,2013.

As per Labour Bureau, Department Statistics, Government of India website index for January 2013 to September ,2013 has already been declared .

Two day back CPI-IW  for November-2013 was notified at  243 and now only one month CPI-IW is required  for exact calculation of DA form Jan-,2014.

We have estimated it from 243-246 and have create four possible scenarios.

Da (dearness allowance) Rates wef 01.01.2006 to 01.01.2014(expected) is given in the list below

Conclusion:From the above it is very much clear that if CPI-IW for December-2013 Notified at 243(case-1) ,244(case-2) ,245( Case-3) then Dearness allowance Rate for January ,2014 will be 100 percent i.e increase of 10 % from July , 2013 .

However if if CPI-IW for December-2013 Notified at 246 then Dearness allowance Rate for January , 2014 will be 101 percent i.e increase of 11 % from July , 2013 .

BLOGGER
Name

ltr
item
SIMPLE TAX INDIA: Expected Dearness allowance-DA- January-2014 to government employee will be 100 percent
Expected Dearness allowance-DA- January-2014 to government employee will be 100 percent