8% Rise in DA/DR for Central Government Employees/Pensioners w.e.f 1st January 2010

  1. Calculation based on All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100
  2. 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.
  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. 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

 

  1. 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).
  2. The half-yearly rise in DA/DR is granted by average price index of 12 months before 1st January/1st July
  3. As per above table, the total of twelve month average price index prior to January 2010 (Jan 2009 to Dec 2009) is 1885.
  4. The twelve month average price index for the period Jan 09 to Dec 09 is 157 as per above table.
  5. 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)
  6. 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 1st January 2010 is 35%, thus a rise of 8% over 27% already being paid.

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3 thoughts on “8% Rise in DA/DR for Central Government Employees/Pensioners w.e.f 1st January 2010

  1. 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.

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