Zee Media Bureau
New Delhi: Just ahead of Diwali, the union government brought cheers to around 50 lakh central government employees and 58 lakh pensioners by announcing a 2 percent dearness allowance to be effective from July 1, 2016.
Central and state governments offer dearness relief to their employees and pensioners to offset the impact of price rise on their monthly earnings. Governments issues DA twice to its employees, in January and July.
The Dearness Allowance for government employees is decided on the basis of the average of 12-month All India Consumer Price Index number (AICPIN) for Industrial Workers, which is calculated by Labour Department.
Below here is a simple calculation which may give you an idea on the percentage increase in Dearness allowance expected from January 2017:
Where A= Month/Year
B = CPI(IW)BY 2001=100
C = Total of 12 Months Index
D = Average of 12 Months (C/12)
E = % Increase (D-261.42) x 100
F = DA (E/261.42)
The calculator, here, gives only approximate percentage of increasing in Dearness Allowance. http://7thpaycommissionnews.in/expected-da-calculator-from-january-2017/