Expected DA From July 2018 For CG and GDS Employee

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Central Government Employees including Railway Employees, Defense Personnel and all Central Services and Defense Pensioners are paid dearness allowance at the rate of 7% with effect from January 2018.

Expected DA from July 2018
Expected DA from July 2018

Expected DA from July 2018 – Increase 2% Expected – Estimated DA with effect from July 2018 will be 9% – Suggestion based on actual Consumer Price Index for 10 months and estimated CPI for 2 months

Finance Ministry DA orders for Dearness Allowance with effect from 1st January 2018

We have attempted to estimate DA from July 2018 in this article.

Dearness Allowance payable with effect from 7th CPC Basic Pay = (Avg of CPI-IW for the past 12 months – Average of CPI-IW recorded in 2015)*100/(Average of CPI-IW recorded in 2015)

New DA Calculator for calculating Dearness Allowance payable on 7th CPC Basic Pay:

Taking in to account, the revised DA Calculation Formula we have now come up with a new 7th Pay Commission DA Calculator.

Expected DA from 1st July 2018 :

We need AICPI (IW) (All India Consumer Price Index (Industrial Workers) for the months from July 2017 to June 2018 to determine Dearness Allowance with effect from July 2018. Actual Consumer Price Index for the months from July 2017 to March 2018 which are already available are tabulated as follows.

Month Actual AICPI-IW
July-2017 285
Aug-2017 285
Sep-2017 285
Oct-2017 287
Nov-2017 288
Dec-2017 286
Jan-2018 288
Feb-2018 288
Mar-2018 287
Apr-2018 288
May-2018 To be released
Jun-2018 To be released

With actual CPI for the months from July 2017 to April 2018 and estimated CPI from May 2018 to June 2018, we have to determine DA from July 2018.

Expected DA from July 2018 : Estimation : 1

A conservative estimation of keeping CPI for May and June 2018, at the same level which was recorded in the month of April 2018 viz., CPI of 288, gives us an increase of 2% in DA from July 2018.

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