Dearness Allowance increasing 8% as per AICPIN – Dec.2009

HOW TO CALCULATE DEARNESS ALLOWANCE

  
All India Consumer Price Index Numbers for Industrial Workers on base 2001=100 for the month of December, 2009
  
All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of  December, 2009 increased by 1 point and stood at 169 (one hundred and sixtynine).
  
During December, 2009, the index recorded a maximum increase of 5 points each in Yamunanagar, Mundakkayam and Puducherry centres, 4 points each in Madurai, Goa and Guntur centres, 3 points in 7 centres, 2 points in 9 centres and 1 point in 19 centres. The index decreased by 1 point in 8 centres, 2 points in 6 centres and 3 points in 7 centres, while in the remaining 16 centres the index remained stationary.
  
The maximum increase of 5 points in Yamunanagar centre is mainly on account of increase in the prices of Wheat, Wheat Atta, Fresh Milk, Sugar, Firewood, etc., in Mundakayam centre due to Rice, Onion, Firewood, etc. and in Puducherry centre due to Rice, Poultry, Fish Fresh, Onion, Snack Saltish, Tea (Readymade), etc. The increase of 4 points each in  Madurai, Goa and Guntur centres is mainly due to increase in the prices of Bread, Urd Dal, Eggs (Hen), Fish Fresh, Onion, Barber Charges, etc. However, the decrease of 3 points each in Tripura, Firidabad, Rangapara Tezpur, Bokaro, Siliguri, Lucknow and Agra centres is due to decrease in the prices of Rice, Wheat Atta, Onion, Vegetable items, etc.
  
The indices in respect of the six major centres are as follows :
1. Ahmedabad – 162
 
2. Bangalore – 176

3. Chennai – 159
 
4. Delhi – 156
 
5. Kolkata – 166
 
6. Mumbai – 171
 
  
The point to point rate of inflation for the month of December, 2009 is 14.97% as compared to 13.51% in November, 2009.
  

HOW TO CALCULATE DEARNESS ALLOWANCE

DA Calculation based on AIl India Consumer Price Index Numbers published by Labour Bureau, Govt. of India.

The decision taken by the Government on the recommendations of the Sixth Central Pay Commission relating to DA, to decide that the DA admissible to
all categories of Central Government employees shall be admisible from the dates mentioned below at the following rates:

Basis of Dearness Allowance:-

Dearness Allowance is granted to compensate the price hike above 536 points(Base Year 1982=100) 115.76 Points(Base Year 2001=100), to which
the revised pay scales relate. This will be sanctioned twice a year, payable from first Januray and first July, reckonedon the following
basis…

(i) The twelve monthly average price index above 536/115.76 Points is determined twice in a year for the period ending December and June.

(ii) The percentage increase is taken in whole number only and the fraction ignored.

(iii) Neutralization will be 100% uniformly for all employees.

Calculation of Dearness Allowance
:-

(a) Dearness Allowance is paid on the Basic Pay as defined in FR 9(21)(a)(i)+NPA, if any (Personal Pay, Special Pay, etc., not included).

(b) Fractions of 50 paisa and above to be rounded off to the next higher rupee and less than 50 paisa ignored.

(c) For part of a month, rate of Dearness Allowance to be applied on the rate of pay+NPA and then Dearness Allowance for the number of days calculated.

(d) In the case of daily-rated worker, monthly pay reckoned at 26 times his basic daily wages. Hence for part of a month, calculation of Dearness
Allowance will be on Monthly pay + 26 x Number of days.