**How to calculate 7th CPC Dearness Allowance for Central Government Employees**

Dearness Allowance is granted to compensate the price hike above 261.4 Points(Base Year 2001=100), to which the revised pay scales relate. This will be sanctioned twice a year, payable from first January and first July, reckoned on the following basis…

(i) The twelve monthly average price index above 261.4 Points is determined twice in a year for the period ending December and June.

(ii) The percentage increase is taken in whole number only and the fraction ignored.

(iii) Neutralization will be 100% uniformly for all employees.

**Calculation of Dearness Allowance:-**

(a) Dearness Allowance is paid on the Basic Pay as defined in FR 9(21)(a)(i)+NPA, if any (Personal Pay, Special Pay, etc., not included).

(b) Fractions of 50 paisa and above to be rounded off to the next higher rupee and less than 50 paisa ignored.

(c) For part of a month, rate of Dearness Allowance to be applied on the rate of pay+NPA and then Dearness Allowance for the number of days calculated.

(d) In the case of daily-rated worker, monthly pay reckoned at 26 times his basic daily wages. Hence for part of a month, calculation of Dearness Allowance will be on Monthly pay + 26 x Number of days.