Expected Dearness Allowance (DA) from July 2022 Calculation
The Consumer Price Index for Industrial Workers (CPI IW BY 2001=100) is the key factor for determining Dearness Allowance for Central Government Employees and Pensioners. Labour Bureau is being released the statistics of CPI (IW) through its official portal. On the last working day of every month, the Labour Bureau is released the AICPIN of succeeding month.
Dearness allowance is calculated on the basis of current basic pay and the dearness relief is calculated on the basis of basic pension. The Government of India decides the dearness allowance is revised two times in a year between January and July for Central Government employees. The Dearness Allowance is calculated by multiplying the current rate of dearness allowance by the basic salary of the central govt employee.
Expected DA 01.07.2022
Dearness Allowance is a key component of the pay rise factor. Central govt employees has expected to hike the DA in every six months. Central government employees DA will be increase by 4% in the month of July 2022. As per the approved formula for DA calculation, the rate of Dearness Allowance to be paid to all central Government Employees with effect from July 2022 will be enhanced from the existing rate of 34% to 38% of the Basic Pay with effect from 1st July, 2022.
DA Calculation Formula
Dearness Allowance Percentage = (Average of AICPIN for the past 12 months – Fitment Factor) x 100 / Fitment Factor
7th Pay Commission DA Percentage = (Average of AICPI for the past 12 months – 261.4) x 100 / 261.4
How is DA calculated for July 2022 for Central Govt Employees?
To calculate the DA from July 2022, we need 6 months AICPIN from January 2022 to June 2022. So, we will calculate every month after releasing the AICPIN by Labour Bureau. Now the AICPIN for April 2022 was released by Labour bureau on 31.5.2022. And we need the data of AICPIN for May 2022 and AICPIN for June 2022 to calculate DA from July 2022.
How to calculate DA in Salary for Central Govt Employees?
DA is calculated based on their basic salary. For example, if an employee's basic salary is 24000 and if a pensioner's basic pension is 8130, the calculation of DA: Basic Salary: Rs. 24000 x 34% = Rs. 8160
What will be the Expected DA and DR from July 2022?
The percentage of Dearness Allowance is likely to be increase 4% from July 2022. So the Expected DA July 2022 will be 38%