We have calculated the expected DA(dearness allowance ) wef 01.07.2014 (July,2014) and this is not a pure guess work  but based on real calculation and we have also explained the basis of of our calculations .

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 July-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 (July,13 to June,2014)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 July,2014 (01.01.2014), we need Price index average from July, 2013 to June,2014.

As per Labour Bureau, Department Statistics, Government of India website index for July 2014 to April,2014 has already been declared .

Da (dearness allowance) Rates wef 01.01.2006 to 01.07.2014(expected) is given in the list below

However Price Index from May ,2014 to June,2014 is yet to be declared.

So to estimate the DA rates wef January ,2014 we have to consider Price Index forMay ,2014 & June,2014 on estimated basis . Further We will revise the Calculation as and when these months actual figures will be available.

We have assumed four possible situation in above chart. In Case-1  DA Rate is  6 % and in other three situation DA rate is calculated at  7%.

Conclusion :Expected DA with effect from January ,2014 to be 107% (01.01.2014)

From the above calculation most likely case will be case-2and Case-3 .Case -4and Case -1 can be ruled out due to Low estimated .So balance left is 107 % ,
Keeping in View all circumstances and economic situation we expect sum total of price index of 7/2013 to 6/2014 in between range of 2876-2889 (Case-2 to 4) and Expected DA wef 01.01.2014 to 107%(7% Increase)

Please Comment about our above calculation and Record your estimated Price Index from 5/2014 to 6/2014 or sum total of price index 7/2013 to 6/2014 and DA rate wef 7/2014.

Tags: expected da from July,2014, Dearness allowance wef 01.07.2014, July 2014 da rate , tentative da rate from January,2014 , new da instalment , new rate of da , 7% increase in da from  July 2014, da 7/2014, da 7/2014, Dearness allowance for Central govt employees ,July 2014(01.07.14)

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Expectecd DA rate for July-2014-(7-2014) for Government employees is 7 percent wef 01.07.2014
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