D.A History
KNOW HOW D.A. IS CALCULATED!
1. Labour Department will release Consumer Price Index (No.)
every month ,based on year 2001.
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 D.A is calculated on CPI based on year 1960.
5. Conversion factor to year 2001 is Index No .X 4.63 X 4.93
6. For every increase of 4 points 1 slab at the rate of 0.15% is given as D.A
7. Since everymonth’s CPI is announced on the last day of next month D.A is given effect on the subsequent month. i.e 2 months later.
EXAMPLE: for D,A Feb 2012:
APR MAY JUN JULY AUG SEP OCT NOV DEC 2011
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186 187 189 193 194 197 198 199 197
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186 187 189 193 194 197 198 199 197
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Average of Oct,Nov,Dec 2011 =198
On conversion =Average O N D 2011(198X4.93X4.63) = 4519.53
On conversion =Average O N D 2011(198X4.93X4.63) = 4519.53
D.A already paid for Nov. 2011(i.e average of Jul,Aug,Sep)= 401 slabs = 401X4+2836 = 4440.00
(2836 is already merged point in 9th B,P)
Increase = 79.53
Slabs =79.53/4=19.88=19
(ONLY WHOLE NUMBERS ARE TAKEN.
DECIMELS ADJUSTED IN THE NEXT MONTH )
HENCE INCREASE FOR Feb 2012 is 19x0.15=2.85% of (B.P+SPL.ALLOW.+PQP)
Toal D.A for Feb,Mar,Apr 2012=401+19=420 slabs=60.15%+2.85%=63%
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