How is DA calculated?
Table of Contents
How is DA calculated?
The formulae for calculating dearness allowance are as under: For central government employees: DA\% = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76)100 For central public sector employees: DA\% = ((Average of AICPI (Base Year 2001=100) for the past 3 months -126.33)/126.33)100 Here.
How DA is calculated in salary?
Presently, it stands at 50\% of the basic salary. This has been a result of the constant enhancement in the DA ever year to offset the adverse effects of inflation. As per the rules, it is a practice to merge the DA with basic salary when it crosses the level of 50\%.
How DA is calculated for central govt employees?
Earlier in July this year, the Central Government had hiked DA and DR for both government employees and pensioners by11 percentage points to 28\% of basic pay/pension. Now, the DA of Central Government Employees will be calculated at the rate of 31\% of Basic pay.
How is basic DA and HRA etc calculated?
The amount of tax deduction that can be claimed will be the least of the following:
- (Actual rent paid) – (10\% of the basic salary) = Rs. 12,000 – (10\% of Rs. 23,000) = Rs. 9,700; or.
- Actual HRA offered by the employer = Rs. 15,000; or.
- 50\% of the basic salary = 50\% of Rs. 23,000 = Rs. 11,500.
What is DA in salary slip?
The term DA in your salary slip stands for dearness allowance is calculated based on an employee’s salary. Generally, the living cost allowance is provided under the umbrella of the dearness allowance. A certain percentage of an employee’s basic salary is fixed as DA.
What is current DA rate?
“….the Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 28 per cent to 31 per cent of the basic pay with effect from July 1, 2021,” said the office memorandum dated October 25.
How is da calculated in private sector?
Calculation of Dearness Allowance
- For Central Government employees: Dearness Allowance \% = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76) *100.
- For Central public sector employees: Dearness Allowance \% = ((Average of AICPI (Base Year 2001=100) for the past 3 months -126.33)/126.33) *100.
How DA is calculated in private sector salary?
Does HRA come under DA?
House Rent Allowance is paid by the employer to the employee as part of their salary. To calculate House Rent Allowance (HRA) one has to consider Basic Salary, Dearness Allowance(DA) and Commission that is if paid as percentage of turnover.
How DA is calculated in bank salary?
DA is calculated based on Consumer Price Index and revised in every quarter for bank employees. As DA is related to cost of living, it varies from employee to employee based on whether they work in urban sector, semi-urban sector or the rural sector.
What is the DA rate from January 2021?
Following the COVID pandemic outbreak, the government had frozen the three additional instalments of the DA and DR, which were due from January 1, 2020, July 1, 2020, and January 1, 2021. The freeze was lifted from July 1, 2021, and the DA, DR rate was hiked by 11 percentage points to 28 \%.
What is the DA rate from July 2021?
1/1/2020-E-II (B) dated 20th July, 2021 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 28\% to 31\% of the Basic Pay with effect from 1st July, 2021. 2.
How to calculate the 7th CPC da percentage?
7th CPC DA Percentage = (12 Monthly Average) – 261.42) / 261.42 x 100 (ignore decimals) Check also: 7th Pay Commission DA Chart For example, If we calculate the DA for the month of January 2018, we need 12 months of AICPIN data from January 2017 to December 2017. Now see the table, how da is calculated:
What is the current DA percentage for 7th Pay Commission?
7th Pay Commission DA Percentage = (Average of AICPI for the past 12 months – 261.4) x 100 / 261.4 The current rate of Dearness Allowance is 17\% (Updated on 14.10.2019) The current rate of Dearness Relief is 17\% (Updated on 21.10.2019)
How to calculate the percentage of Da and Dr from previous months?
If you want to calculate the percentage of DA and DR for a particular month, you need the Consumer Price Index (AICPIN) for 12 months of previous months’ data. If you want to calculate the exact percentage of ‘DA from January’ or ‘DA from July’ of any year, you have to know the 18 months of previous AICPIN data.
How to calculate da from aicpin in July 2021?
To calculate the DA from July 2021, we need 6 months’ AICPIN from January to June. So, we will calculate every month after releasing the AICPIN by Labour Bureau. What will be the total DA in July 2021?