Know how D.A. is calculated for Bankers? Know DA history

                                            

1. Labour Department will release Consumer Price Index (No.) every month ,based on year 2001.

2. Jan,Feb,March is one quarter. likewise there are 4 quarters.

3. Difference between average CPI over average of previous quarter is called increase.

4. Bank Dearness Allowance(DA) is calculated on CPI based on year 1960.

5. Conversion factor to year 2001  is  Index No.* 4.63 * 4.93

6. For every increase of 4 points 1 slab at the rate of 0.15% is given as D.A

7. Since every month’s CPI is announced on the last day of next month Dearness Allowance(DA) is given effect on the subsequent month. i.e 2 months later.


EXAMPLE: 

Calculate Dearness Allowance(DA) for Feb 2012:


APR   MAY  JUN  JULY  AUG  SEP  OCT  NOV   DEC -2011
----------------------------------------------------------------------------------
  186    187     189     193     194    197    198    199      197
--------------------------------------------------------------------------- -------

Average of Oct,Nov,Dec 2011                     =(198+199+197) * 4.93 * 4.63 / 3

On conversion =Average O N D 2011        = 4519.53 

DA already paid for Nov. 2011(i.e average of Jul,Aug,Sep) = 401 slabs = 401 * 4 + 2836  = 4440.00   (2836 is already merged point in 9th B,P)

Increase    4519.53 - 4440 = 79.53    

Slabs    =79.53 / 4 = 19.88 = 19

(ONLY WHOLE NUMBERS ARE TAKEN. DECIMALS ADJUSTED IN THE NEXT MONTH )

HENCE INCREASE FOR Feb 2012 is 19 * 0.15=2.85% of (B.P+SPL.ALLOW.+PQP) 

Total Dearness Allowance(DA) for Feb,Mar,Apr 2012 = 401+19 = 420 slabs = 60.15%+2.85% = 63%

****************************************************

D.A. History:

                                                                         
Month
Slabs
Percentage(%)
Nov,Dec, 2007 & Jan 2008
40
6.00
Feb,Mar,Apr    2008
55
8.25
May,Jun,July   2008
63
9.45
Aug,Sep,Oct     2008
84
12.60
Nov,Dec, 2008 &Jan 2009
116
17.40
Feb,Mar,Apr    2009
133
19.95
May,Jun,July   2009
135
20.25
Aug,Sep,Oct     2009
154
23.10
Nov,Dec, 2009 & Jan 2010
213
31.95
Feb,Mar,Apr    2010
245
36.75
May,June,July  2010
264
39.60
Aug,Sep,Oct     2010
272
40.80
Nov,Dec,2010 & Jan 2011
308
46.20
Feb,Mar,Apr    2011
333
49.95
May,Jun,July   2011
352
52.80
Aug,Sep,Oct     2011
360
54.00
Nov,Dec, 2011 & Jan 2012
401
60.15
Feb,Mar,Apr    2012
420
63.00
May,June,July  2012
428
64.20
Aug,Sep,Oct     2012
468
70.20
Nov,Dec. 2012 & Jan 2013
510
76.50   10.90
Feb,Mar,Apr  2013                         
535
80.25   13.40
May,June,Jul  2013
561
84.15   16.00
Aug,Sep,Oct  2013
593
88.95   19.20
Nov,Dec, 2013 & Jan 2014
641
96.15   24.00
Feb, Mar, Apr 2014
666
99.60    26.50
May,June,July 2014
650
97.50    24.90
Aug,Sep,Oct 2014
683
102.45  28.20
Nov,Dec 2014&Jan 2015
732
109.80  33.10
Feb,Mar,Apri 2015
734
110.10  33.30
May, Jun,July 2015
337
33.70
Aug,Sep,Oct  2015
364
36.40
Nov, Dec 2015 & Jan 2016
398
39.80
Feb, Mar, Apr 2016
426
42.60
May, Jun, Jul 2016
419
41.90
Aug, Sep, Oct 2016
455
45.50
Nov, Dec 2016 & Jan 2017
478
47.80
Feb, Mar, Apr 2017
469
46.90
May, Jun, Jul 2017
456
45.60
Aug, Sep, Oct 2017
478
47.80
Nov, Dec 2017 & Jan 2018
516
51.60
Feb, Mar, Apr 2018
527
52.70
May, Jun, Jul 2018
529
52.90
Aug, Sep, Oct 2018
541
54.10
Nov, Dec 2018 & Jan 2019
607
60.70
Feb, Mar, Apr 2019
611
61.10
May, Jun, Jul 2019
645
64.50
Aug, Sep, Oct 2019
681
68.10
Nov, Dec 2019 & Jan 2020
717
71.70
Feb, Mar, Apr 2020
759
75.90
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1 comment:

  1. Sir you have explained very nicely how to calculate Da in banks which is very useful for every banker. I have also tried to do it please have a look at this https://jaiibmocktests.blogspot.com/2020/07/expected-increase-in-da-in-banks-from.html?m=1

    ReplyDelete


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