Calculator for Expected DA from July 2016 in 6th and 7th Pay Commission
There are three main factors which determine the increase in percentage of DA in every pay Commission
1.DA calculation Formula
2.AICPIN for Industrial Workers
3. Base Average Index
- Formula for DA calculation
- AICPIN for Industrial Workers
The Consumer Price Index for Industrial Workers (CPI-IW) is an important statistical/economic indicator. It was first introduced on scientific lines with base 1960=100 which was based on the results of Family Living Survey conducted in 1958-59 at 50 industrially important centres. The series was then, updated on base 1982=100 and a revision in 1999-2000 has further updated the base on 2001=100. The current series of CPI-IW with base year 2001=100 covers 78 industrially important centers spread across the country.
- Base Average IndexAfter neutralization of DA to revise the Pay and Allowance in Every Pay Commission, the Base Average Index has been modified taking into the account of 12 Months AICPIN points of previous year to neutralization.
1. From 1996 onwards, the average base Index was 306.33 (with base 1982=100) How 306.33 was arrived?
To calculate the DA in Fifth pay commission, the 12 Month Average of AICPIN for the year 1995 was taken. The 12 months AICPIN Average of 1995 was 306.33.
2. From 2006 onwards, the Avarage Base Index is 115.76 (with Base 2001 = 100)
How 115.76 was arrived…?
The Government has developed a new series with base 2001, with effect from January 2006. Back data series with base 2001 can be generated using linking factor 4.63.
So the AICPIN Average of 2005 (with base 1982=100) i.e 536 had to be modified using linking factor 4.63 to adopt the new series in DA calculation. Thus the Base Index Number 115.76 was arrived.
3. For 7th Pay Commission what will be the Base Index…?
As the 7th Pay commission recommendations will be implemented with effect from 1.1.2016, the AICPIN average of 2005 will be the Base Index for calculation of DA for 7th Pay Commission.
So formula for Calculation of DA in 7th Pay Commission is ….
Accordingly, the following Calculator will calculate the Sixth CPC and 7th CPC Expected DA from July 2016.
EXPECTED DA CALCULATION AS PER 6th & 7th CPC | |||||||
M/Y & Link | CPI(IW) BY2001=100 |
6th CPC DA% Monthly Increase |
7th CPC DA% Monthly Increase |
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June 2016 |
EXPECTED DA FROM JUL 2016 AS PER 6TH CPC |
EXPECTED DA FROM JUL 2016 AS PER 7TH CPC |
ASHOK L KODACHWAD, Sr.SO (A)/HUBLI says
My basic pay as on 1-7-2016 is Rs.33390/-& after vii PC implementation it will be Rs.87700/-. if CPI(IW) for June-2016 remain static also the DA as per above formula will be 7% in VI PC & 2% in VII PC. Accordingly my DA amt. will be Rs.2337/- & Rs.1754/- respectively. HOW IT IS THAT MY DA AMT. IN VII PC WILL BE LESS THAN WHAT I WILL GET UNDER VI PC. IS IT NOT AN ANOMALY OR WHETHER THE FORMULA IS WRONG ?.