Expected 7% Rise in DA/DR for Central Government Employees/Pensioners w.e.f 1st July 2012

01.09. 2012

          Expected  7% Rise in DA/DR for Central Government Employees/Pensioners w.e.f 1^st July 2012

1.      Calculation based on All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 (new)

2.      For all the Central Government Employees/pensioners, there would be a rise in DA /DR to ,which would result in the overall rise to   from 1.7.2011 as per calculations below.

3.      HOW TO CALCULATE DEARNESS ALLOWANCE...
Every month government has announced All India Consumer Price Index for Industrial workers, according to the price of commodities.

Month & year	Price Index with base year 2001 = 100
July 11	193
August 2011	194
September 2011	197
October 2011	198
November 2011	199
December 2011	197
Jan 2012	198
Feb 2012	199
March 2012	201
April 2012	205
May 2012	206
June 2012	208
	2395
Average	199.583

4.      With effect from 01.01.2006, Dearness allowance is granted to compensate the price increase above 536 points Base Year 1982=100),(115.763 points Base Year 2001=100).

5.      The half yearly rise in DA/DR is granted on the basis of average price index of 12 months prior to 1^st January/1^st July

6.      As per above table, the total of twelve month average price index prior to July 2012 =2395The twelve month average price index for the period as per above table.= 199.583

7.      Subtract 115.763 from 199.583which works out to 83.820 It is a rise over 115.763 as on 31.12.2005 (with respect to base year 2001=100)

8.      Calculate the percentage rise by multiplying (83.820) with 100 / 115.76. It works out to 72.40

9.      The fraction is to be ignored. The whole number only is to be considered. So the DA/DR admissible with effect from 1^st July 2012 is 72%     thus a rise of 7%   over 65% already being paid

DR wef 1.7.12 Av all India inflation index 199.583-115.76= 83.820 x 100divided by 115.76= 72 %

Er S.C. Maheshwari

Secy. (Rly) BPS