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7th Pay Commission DA Calculation

7th Pay Commission DA Calculation

How to calculate DA on Salary? and How to calculate DA on Pension?

You can check the current status of DA on basic salary: Select your current basic salary as per pay matrix level and click the ‘Calculate’ button. The tool will show the amount of Dearness Allowance with the old and expected percentage of DA.

Central DA Calculation Effective from 1.7.2021

Current Rate of DA 31% of Basic Salary
Minimum Basic Salary Rs. 18000
Minimum Dearness Allowance Rs. 5580
Minimum Basic Pension Rs. 9000
Minimum Dearness Relief Rs. 2790

DA Online Calculator

Tool Name DA Online Calculator
Beneficiaries Central Govt Employees
Published on 25.7.2020
Updated on 31.7.2021
Input Details Pay Matrix Level and Basic Pay
Output Details Amount of Dearness Allowance (Current Rate)
Tool Feature Previous rate and Expected rate of DA %
Developed by TEUT Digital Concepts

Suspension of DA is revoked!

The Union Cabine Committee has decided to withdraw the temporary suspension on a hike of additional Dearness Allowance for CG Employees and Pensioners with effect from 1st July 2021.

The accumulated rate of Dearness Allowance (3 instalments are Jan 2020, Jul 2020 and Jan 2021) is 31% effective from 1.7.2021. The next additional instalment of DA from July 2021 is pending!

How to Calculate DA and Arrears for Govt Employees?

VDA (Variable Dearness Allowance) is not applicable to Central Govt Employees. Variable Dearness Allowance is different from Dearness Allowance

What is DA in salary?

The DA (Dearness Allowance) is the major element in the salary structure of Government employees. This increment is given twice in a year for compensating the price of essential commodities.

How to calculate Dearness Allowance (DA) in Salary?

DA calculation is very simple. The current rate of Dearness allowance multiply with your basic salary is Dearness allowance. For example, the existing rate of percentage is 12%, if your basic salary is Rs. 49000. The DA is (49000 x 12) /100. 

How to Calculate DA and DR Percentage of CG Employees and Pensioners?

Every six months the Government of India has declared a particular percentage of DA and DR for its employees and pensioners for tackling the price hike in essential commodities. If you want to calculate the percentage of DA and DR for a particular month, you need the Consumer Price Index (AICPIN) for 12 months of previous months’ data.

If you want to calculate the exact percentage of  ‘DA from January’ or ‘DA from July’ of any year, you have to know the 18 months of previous AICPIN data. For example, if you want to know the DA percentage of September 2019, you need the AICPIN data from the month of October 2018 to September 2019. The percentage will be an effect from October 2019.

All India Consumer Price Index (AICPIN)

Dearness allowance is calculated based on All India Consumer Price Index for Industrial Workers Base Year 2001=100. The index has been released by the Labour Bureau for every month.

6th CPC DA Percentage = (12 Monthly Average – 115.76) / 115.76 x 100 (ignore decimals)

7th CPC DA Percentage = (12 Monthly Average) – 261.42) / 261.42 x 100(ignore decimals)

For example, If we calculate the DA for the month of January 2018, we need 12 months of AICPIN data from January 2017 to December 2017. Now see the table, how da is calculated:

Month / Year AICPIN
January 2017 274
February 2017 274
March 2017 275
April 2017 277
May 2017 278
June 2017 280
July 2017 285
August 2017 285
September 2017 285
October 2017 287
November 2017 288
December 2017 286
Total of 12 Months of AICPIN 3374
Average of 12 Months of AICPIN 281.17
DA Fitment (Linking) Factor (261.42) 7.55
DA for the month of January 2018 7%

How to Calculate DA on Basic Pension for Central Government Pensioners

Dearness Allowance (DA) is the same meaning for Dearness Relief (DR). But the DA is applicable for existing government employees and the DR is applicable for retired government employees (pensioners).

DA is calculated based on their basic salary and the DR is calculated based on their basic pension. For example, if an employee’s basic salary is 18000 and if a pensioner’s basic pension is 9000, then the calculation of DA and DR will be as follows:

  • Basic Salary: 18000 x 21% = 3780
  • Basic Pension: 9000 x 21% = 1890

DA from January 2018: 6th CPC DA from Jan 2018 is 142% and 6th CPC DA from July 2018 is 148%

How to Calculate DA for Defence Personnel

The calculation of DA is same for Defence Forces Personnel at par with Central Government Employees. But the order will be issued by the concern ministry.

DA Calculation with example

DA Calculation for May 2019
AICPIN 314 Points
12 Month Total 3648 (291 + 301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314)
12 Month Average 304.00 (3648/12)
Increased Over 261.42 16.29 (304.00-261.42) / 261.42) * 100
Approximate DA% 16

What is difference between DA and DR?

Dearness allowance and Dearness allowance, both are same, but DA is granting for existing Central Government employees and DR is granting for retired Central Government employees. DA for existing CG employees and DR for CG Pensioners.

What is the meaning of ‘DA Freeze’?

The meaning of ‘Freezing of DA’ (Freezing of Dearness Allowance) is just stopped for some time. Once in six months, a particular percentage of Dearness Allowance is being granted additionally to CG Employees and Pensioners. This DA increment has stopped temporarily for 18 months from 1st January 2020 to 30th June 2021.

Basic + DA Calculation Sheet

Basic plus DA (Dearness Allowance) Calculation Sheet:

Pay Matrix Level Basic Salary DA 28%
Pay Level – 1 18000 Rs. 5040
Pay Level – 2 19900 Rs. 5572
Pay Level – 3 21700 Rs. 6076
Pay Level – 4 25500 Rs. 7140
Pay Level – 5 29200 Rs. 8176
Pay Level – 6 35400 Rs. 9912
Pay Level – 7 44900 Rs. 12572
Pay Level – 8 47600 Rs. 13328
Pay Level – 9 53100 Rs. 14868
Pay Level – 10 56100 Rs. 15708
Pay Level – 11 67700 Rs. 18956
Pay Level – 12 78800 Rs. 22064

DA Loss Calculation for CG Employees

17% fixed DA for 18 months from January 2020 to June 2021 for Central Government Employees and Pensioners

DR (Dearness Relief) Loss Pension Calculator for Govt Pensioners

After implemented an important order issued by the Finance Ministry under the title of “Freezing of Dearness Allowance and Dearness Relief” on 23rd April 2020, all Central Government pensioners including Railways are wishing to know their total contribution to the Govt.

What are the 7th CPC’s Recommendations Regarding Dearness Allowance?

Dearness Allowance is one of the important issues that the Pay Commission deals with.

The calculation method that was recommended by the 6th Pay Commission was radically different from the ones suggested by all the previous Pay Commissions.

Dearness Allowance, which was increasing by 1 or 2% until the 5th Pay Commission suddenly shot up to double-digit numbers. Until the 5th CPC, the All India Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. From the 6th Pay Commission onwards, CPI (IW) 2001 = 100 was used for calculating the DA.

There was another crucial change that the 6th CPC made. it recommended that the Reference Base Index be changed from 306.33. As a result, 115.76 became the new Reference Base Index from 01.01.2006 onwards.

The report says…

The Commission assumed that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay.

The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers).

Analysis and Recommendations: The VI CPC had recommended that the National Statistical Commission may be asked to explore the possibility of a specific survey covering government employees exclusively, so as to construct a consumption basked representative of government employees and formulate a separate index. This has, however, not been done.

Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.

The prices of all items have been sourced from Labor Bureau, Shimla. These prices are used in the calculation of the CPI (IW) and subsequently the calculation of the Dearness Allowance. In the current exercise, the prices of all items are for the period July 2014-June 2015 and have been used in the calculation of DA at 119 percent operative from 01.07.2015.