Why we need to Calculate DA increase from July 2020 when there is a freeze on DA ? What if AICPIN Average Confirmed 3 Percent DA Hike from July 2020 ?
Indeed, there was an order issued by central government to freeze the DA at 17% level up to 1st July 2021. But it doesn’t restrain the accumulation of Increase in DA from 4 instalments from Jan 2020 to July 2021 which will be restored with DA from 1st July 2021.
The Order issued on 23rd April 2020 says
“As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from 1st July 2021 is taken by the Government, the rates of Dearness Allowance and Dearness Relief as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid.”
Calculate Here : DA Arrears Loss due to Freezing of DA
Hence every one percent hike in DA is very important and it will be taken into account.
DA from July 2020 according to AICPIN average
DA from July 2020 will be calculated according to AICPIN average for 12 Months from July 2019 to June 2020.
Up to May 2020 so far 11 Months AICPIN are released . Only the AICPIN for June 2020 is yet to be released.
The 11 Months average of AICPIN = 298.91
If we assume June AICPIN as 330, then 12 Months Average = 326.41
Let us apply this in DA formula to calculate Dearness Allowance from July 2020
DA formula in 7th Pay Commission
DA formula = 12 Months AICPIN Average-261.42/261.42 x 100
If we apply this AICPIN Average in the above DA formula revised in 7th Pay Commission, the rate of DA from July 2020 will increase by 3% from existing 21% to 24%
The results of DA Calculator from July 2020 suggests that only 5 Points increase in AICPIN for June 2020 will give 4% hike. Check this DA calculator given below
Expected DA Calculator from July 2020
The place for AICPIN for June 2020 is left blank in the Expected DA Calculator from July 2020
Enter the CPI Number options with increase and decrease for the Month of June 2020 in the space and check the rate of Dearness Allowance from July 2020