Dearness Allowance Calculator
All India CPI-IW General Index – Last 12 Month’s Data
Point to Point Inflation CPI-IW
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Enter CPI values and click “Calculate DA” to see detailed results
So, Dearness Allowance is, suppose any government employee joined a job in 2010, okay? At that time, suppose the price of tea was 3 rupees, and that man’s salary was 1000 rupees. Now, if today in 2025, the price of tea is 10 rupees, okay?
So, suppose that man’s salary has not increased. What would happen then?
It means the price of living things, like tea, increases, but this government employee’s salary is still the same. So, dealing with this, the government offers Dearness Allowance to its employees. This means they look at the current CPI and based on that, they increase the DA and add it to their basic pay. So, this is why Dearness Allowance is needed.
Now, when the 7th Central Pay Commission was implemented, just in January 2016, at that time, Dearness Allowance was 0. The rule was that at the beginning of the 6-month period, you would not receive any DA, but after that, DA increases started. You can see that from 2016 to last July, how much DA has increased, time by time.
Now the question is how to calculate Dearness Allowance in the 7th Pay Commission, and how the government calculates Dearness Allowance.
So, before understanding Dearness Allowance, you have to understand some terms. Like – CPI, Base Year.
So, first understand CPI – What does CPI mean? So, the full form of CPI is Consumer Price Index, which releases data every month, okay?
Suppose you bought many things, like chocolates, clothes, toys, in 2015. At that time, your total was supposed to be 1000 rupees. But now, you’ve come to 2025, and now, for the same things, you’re paying 3000 rupees. The government measures how much the price has risen, okay? That is called the Consumer Price Index (CPI). The government uses this data to show how much the price has increased from the last month. If the CPI is higher, it means prices have increased quickly, and there’s more inflation.
Now, you’ve understood Consumer Price Index. Next, what is Base Year? An example of a Base Year can be given through GDP. GDP is a good example to understand the Base Year. What does GDP mean? It means the market value of goods or services. For example, suppose last year, a company produced 3 pens, and the price of each was 5 rupees. The GDP would be 15 rupees, right?
So, last year’s GDP was 15 rupees. Now, let’s say this year, the pen price is 8 rupees, and the company produces 2 pens. This year, the GDP would be 16 rupees. At first glance, anyone might say that the GDP has increased, but the reality is that the GDP has not increased. Last year, 3 pens were produced, but this year only 2 pens were produced. Actually, the GDP has decreased. This is where the Base Year comes in. The government uses the Base Year as a reference point to compare against, which gives the real data.
In the Consumer Price Index, there is also a Base Year. That base year is used to compare prices. Now you also have a deeper understanding of the Base Year. Currently, the government uses 2016 as the Base Year data for the Consumer Price Index.
Step-by-Step DA Formula
DA = (CPIcurrent − CPIbase) CPIbase × 100
- Take your current CPI value.
- Subtract the base-year CPI from it.
- Multiply that difference by 100.
- Divide the result by the base-year CPI to get the DA %.
What would the expected Dearness Allowance (DA) be in July 2025? This tool can calculate the expected Dearness Allowance itself, so you can calculate it yourself. However, many experts are saying that the July DA will be around 60%. So, we can expect that 60% DA would be higher than the current 58%. But all of this is still uncertain and depends on future inflation trends. Let’s wait and see
How often is DA revised?
DA is usually revised twice a year. once in January and once in July. The revision is based on the Consumer Price Index (CPI) of industrial workers. if DA increased by 4% then Current DA Would be 60%
Who gets DA?
Central Government Emloyees and Any state Government Emloyees.
What happens to DA after retirement?
Pensiors also recive DA after retiremnt. which is calculated similarly to the DA given to serving employees. However, pensioners’ DA is calculated based on the same rules and formula used for serving employees.
What is the difference between DA and HRA?
Dearness Allowance which is called (DA) is given to compensate for inflation and the rising cost of living, while House Rent Allowance (HRA) is provided to help employees with their accommodation costs.wherever their service, they get hra based on that Wherever they serve, they receive HRA based on that.