DA & Linking Factor – What’s expected?

DA & Linking Factor – What’s expected? – DA Announcement and linking factor explored.
As you all know that DA is calculated based on AICPIN. AICPIN is calculated based on the inflation and the cost of living in various cities. So, what’s going to happen in 7th Pay Commission, let’s read. 

In Pay Commission III, the base year was used as (1960 =100).

• In 4th Pay Commission, the DA was decided to pay twice a year and also for calculating the DA value the percentage increase in the 12 monthly average of All India Consumer Price Index (base 1960). Also the base year was (1982=100) as the base year.
• In 5th Pay Commission, the DA was decided based on (1982=100) as the base year.
• In 6th Pay Commission, the DA was decided based on (2001=100) as the base year.
• In 7th Pay Commission, should we expect to have the base year as (2011=100)?

When the DA calculation change happened from base year 1982 to base year as 2001, there were a steep increase in the DA percentage, this is because the cost of living has increased multifold and also various cities and items was also included while calculating the real DA.

So, what’s been recommend in the 7th CPC Report

Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.

and also check out the gazette notification changes where the linking factor has been included as on AICPIN value as 2016.


Though in (2001=100) the linking factor was 4.63, this lead to the calculation of DA with the average index as 115.76 as per 2005. For example, (2005 , 12 Month Average Index – 536, so the linking factor as per record was 4.63).
All India and Centre-wise Linking factors between New Series of Consumer Price Index Numbers for Industrial Workers on base 2001 = 100 and the previous series on base 1982=100 (General Index).


As you all now understand that the linking factor play a major role in getting the DA value, but the linking factor for year 2016 .

I was not able to find this data in Labour Bureau . We assume that if the linking factor of 2016 used, then we expect to get a higher DA percentage (assumption). This means it would be a real DA value as it would include various cities and the current inflation and CPI.

We hope that when the results are out they would be using the linking factor of 2016 as the gazette notification has this mentioned. Normally the DA announcement is release in September 1st week or 2nd week and hope this is announced shortly.

Dearness Allowance Calculation in 7th CPC Gazette Notification

Dearness Allowance Calculation in 7th CPC Gazette Notification

The Recommendations on Allowances (except Dearness Allowance) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

V. Dearness Allowance:

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.

Source:http://egazette.nic.in/WriteReadData/2016/170924.pdf

6th Pay Commission Dearness Allowance ends with 6% hike at 125%

6th Pay Commission Dearness Allowance ends with 6% hike at 125%

Cabinet approves 6 percent Dearness Allowance hike for Central Government employees

“In the 7th Pay Commission report, submitted to the government on 19.11.2015, it was mentioned that the DA is assumed to be 125 percent as on 1 January, 2016, the day from which the

Commission expects its recommendations to be implemented by the government. As calculated by the 7th Pay Commission, a six percent Dearness Allowance hike is being given to the Central Government employees.”

The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers).

On 23.03.2016, Wednesday, the Centre decided to give a Dearness Allowance of 6 percent to the Central Government employees in order to enable them to manage the price rise and inflation.

On the occasion of Holi, a special cabinet meeting, under the leadership of Prime Minister Narendra Modi, was held in New Delhi on 23rd March 2016. At the end of the meeting, Mr. Ravishankar Prasad, the Minister of Communications and Information Technology, spoke to the reporters. He said, “The cabinet has decided to issue a Dearness Allowance of six percent to the Central Government employees and pensioners.”

The Dearness Allowance is expected to be calculated from January 1, 2016 onwards. This increases the total Dearness Allowance from 119 percent to 125 percent. More than 50 lakh Central Government employees and 58 lakh pensioners will benefit from this. The government will incur an additional financial burden of Rs.14,725 crores. Dearness Allowance is issued twice a year, based on inflation. The previous Dearness Allowance hike, of six percent, was issued in the month of September 2015, and had a retrospective effect from July 2015 onwards.

Release of additional instalment of DA to Central Government employees and DR to Pensioners due from 1.1.2016

Release of additional instalment of DA to Central Government employees and DR to Pensioners due from 1.1.2016 

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.1.2016 

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.01.2016. This represents an increase of 6 percent over the existing rate of 119 percent of the Basic Pay/Pension, to compensate for price rise. 

This will benefit about 50 lakh Government employees and 58 lakh pensioners. 

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of Rs. 6796.50 crore per annum and Rs.7929.24 crore respectively, in the financial year 2016-17 (for a period of 14 months from January, 2016 to February, 2017). 

Source: PIB News

Cabinet approves 6% DA hike for central government employees

Central employees and pensioners' D A hiked by 6%

Cabinet approved 6% D A for central employees and pensioners with effect from 1.7.2015. With this hike total D A stands to 119% from 1st July 2015.

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.7.2015

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.07.2015. This represents an increase of 6 percent over the existing rate of 113 percent of the Basic Pay/Pension, to compensate for price rise. This will benefit about 50 lakh Government employees and 56 lakh pensioners. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be in the order of Rs. 6655.14 crore per annum and Rs.4436.76 crore in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016).

Govt to increase DA to 107 %

Govt to increase dearness allowance to 107 p.c

The Government is likely to approve a hike in dearness allowance (DA) to 107 per cent from the existing 100 per cent, benefiting around 30 lakh Centre’s employees and its 50 lakh pensioners including dependents.

“The average rate of retail inflation for industrial workers from July 1, 2013 to June 30, 2014 works out to be 7.25 per cent. Thus the Central government will hike dearness allowance for it employees by 7 per cent,” an official said.

He said the Finance Ministry will now put a Cabinet proposal for approval of 7 per cent DA hike from July 1 this year as the revised Consumer Price Index-Industrial Workers data for June was released by Labour Ministry on Saturday.

With increase in DA, the pensioners will also gain as the benefit provided to them as dearness relief will be hiked to 107 per cent of basic pay.

The previous UPA government had increased DA to 100 per cent from 90 per cent with effect from January 1, 2014, on February 28 on the basis of agreed formula for revision of the allowance.

However, the central government employees’ union is not very enthused by the 7 per cent hike in the dearness allowance as their long pending demand of merger of DA with basic pay has not been given heed by 7th Pay Commission and the government.

“The erosion of value of wages is unbearable at 50 per cent dearness allowance. Now it will be 107 per cent. It is high time to merge DA with basic pay to provide relief to employees,” Confederation of Central Government Employees’ President KKN Kutty told PTI.

“We had summited our memorandum in this regard to 7th Pay Commission. They forwarded it to Central Government. We have apprised about the issue to the newly elected NDA government.

But no decision has been taken so far,” he said.

With merger of DA with basic pay, the salary and allowances paid in proportion of basic pay are increased. As per earlier practise DA was merged with basic pay once it breached 50 per cent mark. But the 6th Pay Commission has disallowed that.

Source : http://www.thehindu.com/news/national/govt-to-increase-dearness-allowance-to-107-from-100/article6366781.ece

DA CALCULATION SHEET

DA CALCULATION SHEET 

DA CALCULATION SHEET WITH INPUTS OF CPI(I-W) BASE YEAR 2001=100

We are proud to be the first to formulate the DA Table. 

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  =  Percentage increase in prices (ignore decimals)

                     115.76

The table has been created to easily understand the formula...

Dearness Allowance Table from 2008 

(Click to view DA Table form 1.1.2006)

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Read our exclusive articles about Expected DA and 7th CPC...

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EXPECTED DA FROM JULY 2014

100% DA FROM JAN 14 - SOME ALLOWANCES RISE BY 25%

WILL AIR TRAVEL CONTINUE FOR THE NEXT 2 YEARS..?

DID YOU KNOW HOW THE 6TH CPC MULTIPLICATION FACTOR OF 1.86 WAS ARRIVED..?

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DA order issued by Directorate

The DA payable to the employees may be enhanced from existing rate 90% to 100% with effect from
01.01.2014.

Revised rates of DA w.e.f 01-01-2014- Order communicated by Directorate ( DEPT. OF POSTS)

To view Ministry of Finance (Department of Expenditure) OM No.1-1/2014-E-II(B) dated 27-03-2014 please Click Here

The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2014.

50 Percent DA Merger or Interim Relief

50% DA MERGE OR INTERIM RELIEF FOR CENTRAL GOVERNMENT EMPLOYEES:

As everyone knows the Central Government has constituted the 7th Pay Commission and named its Chairmen recently. The decision of the government to constitute the 7th CPC has triggered many expectations among the central government employees. Among them was the merger of 50% DA with basic pay as done in the 5th CPC. But the 6th CPC did not recommended anything like that. It is understood that the employees are eagerly awaiting for an economic relief from the soaring prices of essential commodities. There are instances of announcing interim relief (I.R) to the employees apart from DA by a newly constitute pay commission prior to their implementations in the past.

Let us look into some of them

Interim relief prior to Second Pay

1ST PAYCOMMISSION

Details of interim relief in the past

Interim relief of Rs 5.p.m was granted by the 2nd pay commission with effect from the 1st july, 1957 to all employees drawing basic pay not exceeding Rs.250 per month.

Pay range	Dearness pay	Dearness allowance	Total of dearness allowance. Dearness pay and interim relief
	Rs	Rs	Rs
Up to Rs  50	20	25	45
Rs.51—— 100	25	30	55
Rs.101—– 150	27.50	32.50	60
Rs.151—– 200	30	35	65
Rs.251—- 300	32.50	37.50	70
Rs.301—- 500	35	35	70

Second Pay Commission

IInd Pay Commission

Interim relief as on 31.12.1972

Pay range	Dearness allowance	Portion treated as dearness pay	Interim relief
Below Rs.85	71	47	29
Rs.110-149	71	47	41
Rs.150-209	98	70	41
Rs.210-399	122	90	41
Rs.400-499	146	110	50

Third Pay Commission 

IIIrd Pay Commission

Interim relief (1.6.1983 and 1.3.1985)

Rates of interim relief from 1.6.1983

The staff side of the national council (joint consultative machinery) had raised a demand relating to the parity of scale of pay of central government employees with public sector pay scales and pending acceptance of this demand, an interim relief to all central government employees was sanctioned at the rates indicated below.

	Categories of employees/pay range	Amount of interim relief sanctionedRs.
i	For employees drawing pay below Rs.300 p.m	50 p.m
ii	For employees drawing pay of Rs.300 and above but below Rs 700 p.m	60 p.m
iii	For employees drawing pay of Rs.700 and above but below Rs 1600p.m	70 p.m
iv	For employees drawing pay of Rs.1600 and above but below Rs 2250 p.m	80 p.m
v	For employees drawing pay of Rs.1600 and above but below Rs 2250 p.m	100 p.m

Rates on interim relief from 1.3.1985

The Fourth Pay Commission had recommended an Installment of interim relief at the rate of 10% of the basic pay of the employees subject to minimum of Rs.50 per month to be paid with effect from 1st march 1985.

Fourth Pay Commission

IVth Pay Commission

Interim relief

First installment of interim relief to the central government employees from 16.9.1993

Interim relief of Rs.100/- p.m has been sanctioned to all central government employees w.e.f 16.9.1993.

The amount interim relief will neither be termed as ‘pay’ nor ‘allowance’ nor ‘wages’, accordingly this amount will not counted for any service benefit.

Second instalment of interim relief from 1st April 1995

The Fifth Central Pay commission have recommended a further instalment of interim relief at the rate of of 10% of the basic pay to the employees subject to minimum of Rs .100 per month to be paid with effect from 1st April, 1995.

Third instalment of interim relief from 1st April 1996

The Fifth Central Pay Commission in their interim report have recommended a further instalment of interim relief at the rate of 10% of the basic pay to the employees subject to minimum of Rs .100 per month to paid with effect from 1st April, 1995.

Fifth Pay Commission

Vth Pay Commission

The Fifth CPC, in para 105.11 of their report had recommended that DA should be converted into Dearness Pay each time the CPI increase by 50% over the base index used by the Pay Commission.

Merger of 50% of Dearness Allowance/Dearness Relief with basic pay/pension to Central Government employees/pensioners w.e.f. 01/04/2004.

6th Pay Commission

VIth Pay Commission

The 6th pay commission after its constitution and implementation did not recommended or suggest any kind of interim relief or merging of DA with the basic pay. As of now the DA has touched 100% and its government is unable to satisfy employees. All federation and associations are pressing the government for the merger of 50% DA. They strongly suggest some kind of relief to the employees As the price of essential commodities are in the rise, the government should act now to fullfil the expectation of the employees. The government should come up with merger 50% DA merger or some interim relief to the employees as early as possible.

50% DA MERGER OR INTERIM RELIEF - ??

 Source: www.govtempdiary.com
[http://www.govtempdiary.com/2014/02/50-da-merge-or-interim-relief-for-central-government-employees/]

Merger of 50% DA will soon be considered by Central Government before the budget session...

50% DA MERGER - 90PAISA

Merger of 50% DA will soon be considered by Central Government before the budget session...

Merger of 50 percent DA may soon be considered by Central Government – Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be decalered before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.

Source : www.gservants.com

[http://www.gservants.com/2014/01/15/merger-50-percent-da-may-soon-considered-central-government-sources/]

Dopt Orders on effective date of merger of erstwhile Group D posts...

Dopt Orders - Effective date of merger of erstwhile Group D posts, now designated as Multi-tasking Staff in Pay Band-I Grade Pay Rs.1800 and recruitment to the post after implementation of the recommendation of the 6th CPC.

No.AB-14017/39/2013-Estt.(RR) (3102233)

Government of India

Ministry of Personnel, Pension & Public Grievances

Department of Personnel & Training

North Block, New Delhi

Dated: 23.12.2013

OFFICE MEMORANDUM

Subject : Effective date of merger of erstwhile Group D posts, now designated as Multi-tasking Staff in Pay Band-I Grade Pay Rs.1800 and recruitment to the post after implementation of the recommendation of the 6th CPC.

In pursuance to the recommendations of the 6th Central Pay Commission, this Department has issued model recruitment rules for the post of Multi-tasking Staff (erstwhile Group D posts) vide OM No. AB-14017/6/2009-Estt(RR) dated 30.4.2010. This Department is receiving references for clarification in regard to the date of effect of merger of erstwhile Group D posts and re-designation as Multi-tasking Staff.

2. The issue has been examined taking into account this Department’s OM No. 20020/4/2010-Estt(D) dated 30.4.2013 with regard to fixation of seniority of officers holding the merged grade of Multi-tasking Staff. It has been decided that the merger and re-designation of erstwhile Group D staff as Multi-taking Staff shall be effective from 29.8.2008. Ministries / Departments may issue orders accordingly in respect of erstwhile Group D posts in their Ministries / Departments and expedite the amendment of the Recruitment Rules of erstwhile Group D posts as the model RRs of MTS.

3. Ministry of Home Affairs etc. are requested to bring the contents of this O.M. to the notice of all their Attached / Subordinate Offices. The autonomous/statutory bodies may adopt the same with the approval of the competent authority as per the rules/ statutes.

4. Hindi version follows.

sd/-

(Mukta Goel)

Director (E-I)

Source: www.persmin.nic.in

[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02est/14017_39_2013-Estt.RR-23122013.pdf]

DA Rates from 01/01/2006 ( for Information)

From   - 2006            

01-01-2006 -- NIL

01-07-2006 -- 2%

01-01-2007 -- 6%

01-07-2007 -- 9%

01-01-2008 -- 12%

01-07-2008 -- 16%

01-01-2009 -- 22%

01-07-2009 -- 27%

01-01-2010 -- 35%

01-07-2010 -- 45%

01-01-2011 -- 51%

01-07-2011 -- 58%

01-01-2012 -- 65%

01-07-2012 -- 72%

01-01-2013 -- 80%

01-07-2013 -- 90%

01-01-2014 -- 100%

Expected DA from January 2013 is 8%

Dearness allowance to all Central Government employees and Pensioners from Jan 2013 will be expected to enhance by 8% and the total DA also will raise to 80% from Jan 2013.

How Dearness Allowance increase is calculated..?

How Dearness Allowance increase is calculated..?

How to calculate Dearness Allowance for Central Government Staff and Employees…

We have been reporting the increase in Dearness allowance every six months, always before official announcement is made. We have not been making predictions or assumptions. Our reporting has always been based on standard calculation used for the purpose. We feel that the visitors also should be aware of the calculation, hence this article.

The Dearness allowance is based on All India Consumer Price Index. The Dearness allowance is granted to compensate the price increase above 536 points (Base Year 1982=100) [115.763 Points (Base Year 2001=100)], to which the revised pay scales relate. This will be approved twice a year, payable from 1st January and 1st July. The twelve monthly average CPI above 536/115.763 points is determined twice in a year for the period ending December and June.

For arriving at Dearness allowance increase we need to know the All India Consumer Price Index for Industrial Workers [CPI(IW)] for the previous six months. For Dearness allowance revision w.e.f 1st January of a year, the CPI of July to Dec are required. For Dearness allowance revision w.e.f. 1st July of a year, CPI of Jan to Jun are required and so on.

The average CPI of the twelve months is then taken for calculation and the following formula is used :

New rate of Dearness allowance = (Average CPI for 12 months – 115.763 x 100) / 115.763

Additional rate of Dearness allowance = New DA rate – Old DA rate

The All India Consumer Price Index Numbers will be notified by the Labour Bureau on the last day of next month on its official website.

Example as follows…
AICPIN for the months for
Jul-11 193
Aug-11 194
Sep-11 197
Oct-11 198
Nov-11 199
Dec-11 197
Jan-12 198
Feb-12 199
Mar-12 201
Apr-12 205
May-12 206
Jun-12 208

Total = 2395
Average = 199.58

Calculation as follows…

2395 – 115.763 x 100
---------------------------- = 72.41
115.763

The total Dearness allowance with effect from Jan 2012 will be 72%.

Source: www.cgstaffnews.com
[http://cgstaffnews.com/?page_id=8025]

Cabinet approves 7% hike in DA for central government employees

NEW DELHI: The Cabinet on Monday approved a hike of 7% in dearness allowance (DA) for central government employees. This means, the DA will now be 72 per cent from the current 65 per cent of basic pay. 

This will benefit about 50 lakh employees and 30 lakh pensioners across India. Last time the government increased the DA was in March 2011 which came into effect from January 1, 2012. 

The current hike will be effective from July 1 this

7% D.A hike is expected from 1st July 2012

The Dearness Allowance payable to Central Government Employees and Pensioners is determined based on All India Consumer Price Index for Industrial Workers. AICPI (IW) for the month of June 2012 has increased from 206 to 208.Basing on the calculation, there will be 7% increase and the expected D.A from 1st JULY 2012 is 72%. DA with effect from 1st July 2012 would be officially announced during September/October 2012.

The D.A calculation is as follows :

To calculate Dearness Allowance we require AICPI (IW) for previous 12 months.

Dearness Allowance with effect from 1st January every year	(Average of AICPI-IW for the months from January to December of previous year – 115.76)X100/115.76
Dearness Allowance with effect from 1st July every year	(Average of AICPI-IW for the months from July of previous year to June of this year – 115.76)X100/115.76
115.76 is a factor which converts 1982 series AICPI (IW) (Base 1982=100), which was applicable prior to 6CPC to 2001 series AICPIW (Base 2001=100). In turn, This is arrived at by dividing the 1982 series AICPI by a linking factor which is 4.63 (536/4.63=115.76)

Calculation of DA with effect from 1st July 2012:

Month	AIl Indian Consumer Price Index (AICPI-IW)
July 2011	193
Aug 2011	194
Sep 2011	197
Oct 2011	198
Nov 2011	199
Dec 2011	197
Jan 2012	198
Feb 2012	199
Mar 2012	201
Apr 2012	205
May 2012	206
Jun 2012	208

Average of AICPI (IW) for the period from July-2011 to June-2012:

(193+194+197+198+199+197+198+199+201+205+206+208)/12	= 199.58
DA with effect from 1st July 2012	= (199.58-115.76)X100/115.76)
	= 72.41
	Rounded to 72