the basis of determining dearness allowance to employee in india is income tax.
the basis of determining dearness allowance to employee in india is income tax.
basis of determining dearness allowance to employee in india is?
income tax
the v central pay commission looked into the issue of differential neutralisation and found it to be injustice to senior officers and recommended uniform neutralization of 100% to employees at all levels. the commission had suggested that dearness allowance should be converted into dearness pay every time the cost of living rises by 50% over the base level.









































the vi central pay commission recommended revision of base year of the consumer price index (cpi) as frequently as feasible.it also changed base year for da calculation to 2001 (base year 2001=100)









































section::::da calculation sheet.
dearness allowance
formula for calculating dearness allowance for central government employees after 1.1.2006 is :









































dearness allowance %= {(average of aicpi(base year 2001=100) for the past 12 months – 115.77)/115.77}*100









































formula for calculating dearness allowance for central public sector employees after 1.1.2007 is :









































dearness allowance %= {(average of aicpi(base year 2001=100) for the past 3 months - 126.33)/126.33}*100









































dearness allowance with effect from january or july of a particular year in the future, once the aicpi(iw) for a particular month is published by the government, whereas for psu employees it is declared quarterly by dpe (department of public enterprise).
dearness allowance