Now that, 7th Pay Commission recommendations will take effect from 1st Jan 2016. Though 7th Pay Commission has recommended for using the same series of Consumer Price Index (Industrial Workers) with Base 2001=100, DA Calculation formula used for 6th CPC Pay will have to be revised as DA to the extent of 125% will be merged with Basic Pay on implementation of 7th Pay Commission recommendations.
In other words, DA on 7th CPC Pay with effect from 1st January 2016 will be reset to 0%.
New DA Calculation Formula based on CPI (IW) after 7th Pay Commission implementation will be as follows.
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.
How to Calculate DA from 1st January 2016?
We have all the actual Consumer Price Indices from January 2015 to December 2015 based on which DA from Jauary 2016 is calculated to be 0%
DA with effect from 1st January 2016 = [261.4]-(261.4)X100/261.4 =0%
DA from 1st July 2016:
We have already estimated DA from 1st July 2016 to be 6% or 7% on 6th CPC Pay.
Click here for estimation of DA from 1st July 2016 on 6cpc pay : DA from July 2016 set to increase by 6% or 7% for Pre Revised Pay (Pre-7th CPC Pay)
As far as DA from 1st July 2016 on 7th CPC pay is concerned, out of 12 CPI-IW required, actual CPI-IW for 11 months (from July 2015 to May 2016) are already available.
Month Actual AICPI-IW
Jun-2016 yet to be released
It could be seen that for further increase in CPI-IW up to 5 points in June 2016 from 275, the CPI-IW recorded in May 2016, DA from july 2016 on 7th CPC Pay will be 2%. It will be 3% only if CPI-IW for June 2016 increases by 6 Points over the price index recorded in May 2016. As 6 Point increase in CPI-IW in one month may not be possible, it could safely be concluded that DA from July 2016 will be 2%
Input from central employees favourite no 1 website http://www.gconnect.in/da-calculator