Expected Dearness Allowance/Dearness Relief may will be increased by 7% from July, 2014 on the basis of AICPIN index if 2 or 3 points increased upto June, 2014. Now as per the All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of February, 2014, Dearness Allowance is comes 105%. One of the possible reasons for the dampening interest could be the fact that unlike last time, there is not going to be a DA hike. Although it is very well known that the hike is based on price rise and inflation, it probably feels to them as if something was lost.
D.A. CALCULATION WITH INPUTS OF CPI(I-W) BASE YEAR 2001=100
We are aware of the fact that a number of you are very keen on learning how to calculate the Dearness Allowance. Hence, we created this table. At a stage, we ourselves were surprised by the response that it had received.
Let us see, in detail, how DA is calculated. The calculations are very easy.
First is the month. Then comes the CPI (IW) Base Year 2001=100 and the relevant data. In the next column, you have the sum total of all the 12 months, i.e., the total of the declared AIPCIN numbers for the past 12 months. Next comes the division of the sum total by 12.
The next step is the most crucial one. You will have to find out by how much it exceeds 115.76. You will have to calculate the excess as percentage of 115.76.
(12 Monthly
Average)- 115.76
---------------- X 100 = % increase in prices (ignore decimals)
115.76
At the most, one can expect an increase of 7%. That too is not for sure. All that depends on the soon to be announced AICPIN points for balance months. Expectation of DA/DR for July, 2014 may understood with table is given below:
D.A. CALCULATION WITH INPUTS OF CPI(I-W) BASE YEAR 2001=100
We are aware of the fact that a number of you are very keen on learning how to calculate the Dearness Allowance. Hence, we created this table. At a stage, we ourselves were surprised by the response that it had received.
Let us see, in detail, how DA is calculated. The calculations are very easy.
First is the month. Then comes the CPI (IW) Base Year 2001=100 and the relevant data. In the next column, you have the sum total of all the 12 months, i.e., the total of the declared AIPCIN numbers for the past 12 months. Next comes the division of the sum total by 12.
The next step is the most crucial one. You will have to find out by how much it exceeds 115.76. You will have to calculate the excess as percentage of 115.76.
(12 Monthly
Average)- 115.76
---------------- X 100 = % increase in prices (ignore decimals)
115.76
At the most, one can expect an increase of 7%. That too is not for sure. All that depends on the soon to be announced AICPIN points for balance months. Expectation of DA/DR for July, 2014 may understood with table is given below:
No
|
Probabilities
|
Expected Increase in Dearness allowance from July 2014
|
Expected DA from July 2014
|
1
|
If this declining trend continues for remaining 5 Months by 1 or 2 points
|
3%
|
103%
|
2
|
If the trend continues with movement between plus or Minus 2 points
|
5%
|
105%
|
3
|
If it continues with increasing trend by 2 points
|
7%
|
107%
|
