4 Aug 2021

Method of Calculation of DA (as per DPE)

 Calculation as per DPE method-new

March 2021 - 119.6 × 2.88 = 344.45 (119.6 is Index in new Series)
April 2021 - 120.1 × 2.88 = 345.89 (345.89 is Index in earlier Series)
May 2021 - 120.6 × 2.88 = 347.33
Total of 3 Months = 1037.67
Average of 3 months = 345.89
Increase over Link Point of 126.33: 345.89 - 126.33 =219.56
219.56 × 100 = 21956
21956 ÷ 126.33 = 173.8

Therefore we are entitled to 173.8 % IDA from 1st July, 2021 for which orders are to be issued. In the same way June index is 121.7 (2016=100) and if we convert it to 2001= 100 series it comes to 350.50

Earlier 2001 = 100 series Index figures were always in round figures. But while converting 2016 = 100 figures to 2001=100 with convertion factor of 2.88 DPE is taking upto two decimal Points. (Please see work sheet of DPE Orders)

[Above input is from Com. V V S Murthy, former AGS at Hyderabad.]