- Calculation based on All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100
- For all the Central Government Employees/pensioners, there would be a rise in DA /DR to 8%,which would result in the overall rise to 35% from 1.1.2010 as per calculations below. Formal orders will be issued by GOI shortly.
- HOW TO CALCULATE DEARNESS ALLOWANCE…

Every month government has announced All India Consumer Price Index for Industrial workers, according to the price of commodities. The price index for December 2009 was released on 29.1.2010. These numbers are as under:-

Month & year | Price Index with base year 2001 = 100 |

January 2009 | 148 |

February 2009 | 148 |

March 2009 | 148 |

April 2009 | 150 |

May 2009 | 151 |

June 2009 | 153 |

July 2009 | 160 |

August 2009 | 162 |

September 2009 | 163 |

October 2009 | 165 |

November 2009 | 168 |

December 2009 | 169 |

Total | 1885 |

Average | 1885/12 = 157 |

- 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).
- The half-yearly rise in DA/DR is granted by average price index of 12 months before 1
^{st}January/1^{st}July - As per above table, the total of twelve month average price index prior to January 2010 (Jan 2009 to Dec 2009) is 1885.
- The twelve month average price index for the period Jan 09 to Dec 09 is 157 as per above table.
- Subtract 115.76 from 157 which works out to 41.24. It is a rise over 115.76 as on 31.12.2005 (with respect to base year 2001=100)
- Calculate the percentage rise by multiplying (41.24) with 100 / 115.76. It works out to 35.625%

10. Ignore the fraction and cosider only the whole number. So the DA/DR admissible with effect from 1^{st} January 2010 is 35%, thus a rise of 8% over 27% already being paid.

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Dear Sir,

I am unable to understand how one can equate 35.625=35 since what ever mathematics I know , 35.625 can be equal to 35.63 (if rounded off to second decimal place)35.6(if rounded off to first decimal place)36(if rounded off to one’s place)40(if rounded off to ten’s place) but it can not be 35 by any known mathematical formula so the central govt arrives at this figure, I fail to understand.

please provide 8% da circular w.e.f. 01-01-2010

Please check the site flash news. You will find the copy of the OM dated 26-03-2010 issued by Ministry of Finance.