Dearness Allowance Calculation July 2010

As on --> Rates of DA (%)
1.1.1996 --> 0
1.7.1996 --> 4
1.1.1997 --> 8
1.7.1997 --> 13
1.1.1998 --> 16
1.7.1998 --> 22
1.1.1999 --> 32
1.7.1999 --> 37
1.1.2000 --> 38
1.7.2000 --> 41
1.1.2001 --> 43
1.7.2001 --> 45
1.1.2002 --> 49
1.7.2002 --> 52
1.1.2003 --> 55
1.7.2003 --> 59
1.1.2004 --> 61

The Government merged 50% of the DA with basic pay w.e.f. 1.4.04 and the dearness allowance continued to be calculated with reference to the AICPI (IW) average as on 1st Jan 1996 of 306.33 without chaging the base consequent to the merger.Accordingly, DA at following rates was sanctioned by the Government from 1.7.04 till 1.7.07:

As on --> Rates of DA (%)
1.7.2004 --> 14
1.1.2005 --> 17
1.7.2005 --> 21
1.1.2006 --> 24
1.7.2006 --> 29
1.1.2007 --> 35
1.7.2007 --> 41


The decision taken by the Government on the recommendations of the Sixth Central Pay Commission relating to DA, to decide that the DA admissible to all categories of Central Government employees shall be admisible from the dates mentioned below at the following rates:

As on --> Rates of DA (%)
1.1.2006 --> 0
1.7.2006 --> 2
1.1.2007 --> 6
1.7.2007 --> 9
1.1.2008 --> 12
1.7.2008 --> 16
1.1.2009 --> 22
1.7.2009 --> 27
1.1.2010 --> 35
1.7.2010 --> 45(Expected)


Basis of Dearness Allowance:-

Dearness Allowance is granted to compensate the price hike above 536 points(Base Year 1982=100) 115.76 Points(Base Year 2001=100), to which the revised pay scales relate. This will be sanctioned twice a year, payable from first Januray and first July, reckonedon the following basis...

(i) The twelve monthly average price index above 536/115.76 Points is determined twice in a year for the period ending December and June.

(ii) The percentage increase is taken in whole number only and the fraction ignored.

(iii) Neutralization will be 100% uniformly for all employees.

Calculation of Dearness Allowance:-

(a) Dearness Allowance is paid on the Basic Pay as defined in FR 9(21)(a)(i)+NPA, if any (Personal Pay, Special Pay, etc., not included).

(b) Fractions of 50 paisa and above to be rounded off to the next higher rupee and less than 50 paisa ignored.

(c) For part of a month, rate of Dearness Allowance to be applied on the rate of pay+NPA and then Dearness Allowance for the number of days calculated.

(d) In the case of daily-rated worker, monthly pay reckoned at 26 times his basic daily wages. Hence for part of a month, calculation of Dearness Allowance will be on Monthly pay + 26 x Number of days.