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Aug 1, 2016

7th Pay Commission DA from July 2016 will be 2% based on CPI from Jul 2015 to Jun 2016

After 7th Pay Commission recommendations was accepted and notification to this effect was issued by Govt on 25th July 2016, All India Consumer Price Index (Industrial Workers) for the month of June 2016 has been released on 29th June 2016.

Now, consumer price index (industrial workers) for all 12 months from July 2015 to June 2016 which are required for calculation of DA from June 2016 for Central Goverrnment Employees and Pensioners have been released now.

MonthActual AICPI-IW
Now that, 7th Pay Commission recommendations will take effect from 1st Jan 2016. Though 7th Pay Commission has recommended for using the same series of Consumer Price Index (Industrial Workers) with Base 2001=100, DA Calculation formula used for 6th CPC Pay will have to be revised as DA to the extent of 125% will be merged with Basic Pay on implementation of 7th Pay Commission recommendations.
As per gazette notification issued by Govt on 25th July 2016 for implementation of 7th Pay Commission recommendations, DA related proposals have been accepted as such.

Extract of notification dated 25.07.2016 relating to 7th Pay Commission:

Sl. No.Recommendation  of  the  Seventh  Central
Pay Commission
Decision of the Government
1.Existing    formula    and    methodology    for
calculating Dearness Allowance to   continue
(Para 8.17.37 of the Report)
Accepted.    The    reference    base    for
calculation of Dearness Allowance after coming into force of the revised Pay structure  shall  undergo  change accordingly and will be linked to the average index as on 01.01.2016.
As per the decision of Govt given above it could been seen that DA on 7th CPC Pay with effect from 1st January 2016 will be reset to 0%.
New DA Calculation Formula based on CPI (IW) after 7th Pay Commission implementation will be as follows.

Dearness Allowance payable with effect from 7th CPC Basic Pay= (Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015)

DA from 1st January 2016

We have all the actual Consumer Price Indices from January 2015 to December 2015 based on which DA from Jauary 2016 is calculated to be 0%
DA with effect from 1st January 2016= [261.4]-(261.4)X100/261.4


DA from 1st July 2016

DA with effect from 1st July 2016= [ (263+264+266+269+270+269+269+267+268+271+275+280)/12]-(261.4)X100/261.4

= 2 %

Use the DA Calculator for 7th Pay Commission Pay given below and calculate DA from July 2016 at ease.

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கல்விச்செய்தி நண்பர்களே..
நீங்கள் ஒவ்வொருவரும் கல்விச்செய்தியின் அங்கமே..
வாசகர்களின் கருத்து சுதந்திரத்தை வரவேற்கும் இந்தப்பகுதியை ஆரோக்கியமாக பயன்படுத்திக் கொள்ள அன்புடன் வேண்டுகிறோம்.

1. இங்கு பதிவாகும் கருத்துக்கள் வாசகர்களின் சொந்த கருத்துக்களே. கல்விச்செய்தி இதற்கு எவ்வகையிலும் பொறுப்பல்ல.
2. கருத்தை நிராகரிக்கவோ, குறைக்கவோ, தணிக்கை செய்யவோ கல்விச்செய்தி குழுவுக்கு முழு உரிமை உண்டு.
3. தனிமனித தாக்குதல்கள், நாகரிகமற்ற வார்த்தைகள், படைப்புக்கு பொருத்தமில்லாத கருத்துகள் நீக்கப்படும்.
4. தங்களின் பெயர் மற்றும் சரியான மின்னஞ்சல் முகவரியை பயன்படுத்தி கருத்தை பதிவிட அன்புடன் வேண்டுகிறோம்.
-அன்புடன் கல்விச்செய்தி