DA is calculated from the base year
The Labor Ministry has changed the calculation formula regarding DA. The Labor Ministry has changed the base year 2016 for Dearness Allowance DA. A new series of wage rate index has been released.
The Labor Ministry said that the new series of WRI with base year 2016=100 will replace the old series of base year 1963-65.
DA Calculation Formula
The amount of dearness allowance is arrived at by multiplying the existing rate of dearness allowance by the basic pay. Let ‘s say the current rate of percentage is 12%, if your basic salary is Rs.56900 then your DA will be (56,900 x12)/100 = Rs.6828.
Percentage of Dearness Allowance = Average of CPI for the last 12 months – 115.76 Now it will be divided by 115.76. The number obtained will be multiplied by 100.
Change in DA happens twice a year
DA is given so that even after rising inflation, the employees do not face any problem in making their living. Usually, the DA is revised every 6 months, January and July.
