EXPECTED DA FROM JANUARY 2024, DA FROM JAN 2024 CALCULATOR

What is Dearness Allowance (DA) and Dearness Relief (DR)?

The Dearness Allowance (DA) and Dearness Relief (DR) is a calculation on inflation and allowance paid to government employees (including public sector employees as public sector employees are also government employees) and pensioners in India.

Dearness Allowance is calculated as a percentage of an Indian citizen's basic salary to mitigate the impact of inflation on people. Indian citizens may receive a basic salary or pension that is then supplemented by a housing or a dearness allowance, or both. Dearness Allowance (DA) and Dearness Relief (DR) is a fully taxable allowance.

यह भी पढ़ें: डीए 50% होने पर कोनसे अलाउंस कितने बढ़ेंगे

Factors Governing the Calculation of DA/DR

Consumer Price Index for Industrial workers (CPI-IW) is the main factor for calculation of Dearness Allowance (DA) for Government Employees and Dearness Relief (DR) for Pensioners. CPI-IW/AICPIN Number is released by Labour Bureau on last working day of the month. The CPI-IW/AICPIN is an important factor in determining the DA/DR for government employees and Pensioners. It measures the changes in the cost of living and inflation rates in various cities and towns across India. The DA/DR is a component of the salary that is adjusted twice a year, in January and July month, based on the AICPIN.

What is the CPI-IW Number for the Current Month?

The All-India CPI-IW for October,2023 increased by 0.9 points and stood at 138.4 (one hundred thirty-eight point four). On l month percentage change, it increased by 0.65 per cent with respect to previous month compared to increase of 0.91 per cent recorded between corresponding months a year ago.

Why to Calculate Expected DA and DR?

The calculation of DA and DR is a useful tool for government employees and Pensioners to estimate their future salary and Pension and plan their finances accordingly.

Calculation for Expected DA from January 2024

For Calculation for Expected DA from January 2024, AICPIN/CPI-IW points for past 12 months are used. Average of last 12 months CPI-IW is taken on account for DA/DR Calculation for the current month.

It is important to note that the DA Calculator’s predictions are based on assumptions and historical data. The actual DA hike may vary depending on the AICPIN points released in the coming months. However, it provides a good estimate and helps employees prepare for any potential changes in their salary.

Below tables will explain the expected DA and DR from January 2024 for Govt Employees and Pensioners-

Condition-1: if CPI-IW Numbers remains same for next two months.

DA/DR FROM JAN 2024 CALCULATOR
MONTH	CPI(IW)	12 MONTH AICPIN AVG	DA/DR CALC	FINAL DA/DR %
Jan 2023	132.8	129.87	43.07	43
Feb 2023	132.7	130.51	43.78	43
Mar 2023	133.3	131.12	44.45	44
Apr 2023	134.2	131.66	45.05	45
May 2023	134.7	132.13	45.57	45
Jun 2023	136.4	132.73	46.23	46
Jul 2023	139.7	133.55	47.13	47
Aug 2023	139.2	134.30	47.96	47
Sep 2023	137.5	134.82	48.53	48
Oct 2023	138.4	135.31	49.07	49
Nov2023	138.4	135.80	49.61	49
Dec 2023	138.4	136.31	50.17	50
JAN 2024

Also Read: Government Employees useful Updates

Condition-2: if CPI-IW Numbers increased by 0.5 for next two months.

DA/DR FROM JAN 2024 CALCULATOR
MONTH	CPI(IW)	12 MONTH AICPIN AVG	DA/DR CALC	FINAL DA/DR %
Jan 2023	132.8	129.87	43.07	43
Feb 2023	132.7	130.51	43.78	43
Mar 2023	133.3	131.12	44.45	44
Apr 2023	134.2	131.66	45.05	45
May 2023	134.7	132.13	45.57	45
Jun 2023	136.4	132.73	46.23	46
Jul 2023	139.7	133.55	47.13	47
Aug 2023	139.2	134.30	47.96	47
Sep 2023	137.5	134.82	48.53	48
Oct 2023	138.4	135.31	49.07	49
Nov 2023	138.9	135.84	49.65	49
Dec 2023	139.4	136.43	50.31	50
JAN 2024

Condition-3: if CPI-IW Numbers decreased by 0.5 for next two months.

DA/DR FROM JAN 2024 CALCULATOR
MONTH	CPI(IW)	12 MONTH AICPIN AVG	DA/DR CALC	FINAL DA/DR %
Jan 2023	132.8	129.87	43.07	43
Feb 2023	132.7	130.51	43.78	43
Mar 2023	133.3	131.12	44.45	44
Apr 2023	134.2	131.66	45.05	45
May 2023	134.7	132.13	45.57	45
Jun 2023	136.4	132.73	46.23	46
Jul 2023	139.7	133.55	47.13	47
Aug 2023	139.2	134.30	47.96	47
Sep 2023	137.5	134.82	48.53	48
Oct 2023	138.4	135.31	49.07	49
Nov 2023	137.9	135.76	49.56	49
Dec 2023	137.4	136.18	50.03	50
JAN 2024

What will be the expected most probable rate of DA/DR from January 2024?

On studying the above three condition, we found that in all condition DA/DR calculation is set to 50%. Thus 4% hike in DA/DR is more likely from 46% to 50% wef 01 January 2024 for government employees and pensioners.

Frequently Asked Question (FAQ)

Q: What is the expected DA for January 2024?

Ans: However, based on the CPI-IW indices till September 2023, the expected DA for January 2024 was almost certain to cross 50%. This is an increase of 4 percentage points from the current DA. However, even with the the CPI-IW declining by 1.7 points in October 2023, still the DA can be 50% from January 2024.

Q: What happens if DA reaches 50 percent?

Ans: Dearness Allowance Merger: It is a practice to combine dearness allowance with basic salary once the DA percentage crosses the 50% mark. It is a great salary booster for employees as all the other parts of the salary is calculated keeping basic salary as the base.

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