Update: DA from July 2018 is calculated to be 9%, which is 2% higher
than the present DA of 7%. This calculation is based on actual All
India Consumer Price Index for the months from July 2017 to June 2018.
The index for the month of June 2018 has also been released.
AICPI-IW for June 2018 is 291 which is two point higher than previous month’s index.
Update: All India Consumer Price Index for the month of May 2018 is
289 as per the press release issued by the Govt recently. The trend
confirms Estimation 1 detailed below which calculates DA from July 2018
for Central Government Employees and Pensioners as 9% ( 2% increase).
Central Government Employees including Railway Employees, Defence
Personnel and all Central Services and Defence Pensioners are paid
dearness allowance at the rate of 7% with effect from January 2018.
We have attempted to estimate DA from July 2018 in this article.
Dearness Allowance payable with effect from 7th CPC Basic Pay |
= (Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015) |
New DA Calculator for calculating Dearness Allowance payable on 7th CPC Basic Pay:
Taking in to account, the revised DA Calculation Formula we have now come up with a new 7th Pay Commission DA Calculator.
DA from 1st July 2018:
We need AICPI (IW) (All India Consumer Price Index (Industrial
Workers) for the months from July 2017 to June 2018 to determine
Dearness Allowance with effect from July 2018. Actual Consumer Price
Index for the months from July 2017 to March 2018 which are already
available are tabulated as follows.
Month |
Actual AICPI-IW |
July-2017 |
285 |
Aug-2017 |
285 |
Sep-2017 |
285 |
Oct-2017 |
287 |
Nov-2017 |
288 |
Dec-2017 |
286 |
Jan-2018 |
288 |
Feb-2018 |
288 |
Mar-2018 |
287 |
Apr-2018 |
288 |
May-2018 |
289 |
Jun-2018 |
291 |
With actual CPI for the months from July 2017 to April 2018 and
estimated CPI from May 2018 to June 2018, we have to determine DA from
July 2018.
Expected DA from July 2018 : Estimation : 1
A conservative estimation of keeping CPI for May and June 2018, at the same level which was recorded in the month of April 2018 viz., CPI of 288, gives us an increase of 2% in DA from July 2018.
DA with effect from 1st July 2018 |
= [ (285+285+285+287+288+286+288+288+287+288+288+288)/12]-(261.4)X100/261.4 |
|
= 9 % (increase of 2% from the present DA of 7%) |
Expected DA from July 2018 : Estimation : 2
We need at least 4 point increase in consumer price index for the
month of May 2018 and at least 1 point increase from that level in the
month of June 2018 to get 3% increase in DA with effect from July 2018.
In other words, Consumer price index should at least be recorded as 292
and 293 in the month of May and June 2018 to get Dearness Allowance to
increase to 10% with effect from July 2018.
DA with effect from 1st July 2018 |
= [ (285+285+285+287+288+286+288+288+287+288+292+293)/12]-(261.4)X100/261.4 |
|
= 10 % (increase of 3% from the present DA of 7%) |
Expected DA from July 2018 : Estimation : 3
In the lowe side, CPI should record below 277 in the month of May
2018 and June 2018 to get DA increase of 1% or no increase in DA with
effect from July 2018 compared to January 2018.
DA with effect from 1st July 2018 |
= [ (285+285+285+287+288+286+288+288+287+288+276+276)/12]-(261.4)X100/261.4 |
|
= 8 % (increase of 1% from the present DA of 7%) |