Estimation Disclaimer:
HRMS has not yet published its official rates for this phase in the portal. This calculator accurately applies the mathematical formulas based on the respective indices. Values shown are gross figures before income tax deductions. Ultimately, the figure generated by your Drawing and Disbursing Officer (DDO) via HRMS is final.
In Brief: Understanding the Arrear
According to Notification 3556-F(P2), DA arrears from April 1, 2008, to December 31, 2015, will be paid in a single instalment. The state specifies calculations based on AICPI (100% neutralisation).
Interestingly, between 2008 and 2010, the West Bengal government actually paid a *higher* DA percentage than both the AICPI and WBCPI index demanded. Therefore, no positive arrears are generated for those specific initial years (2008-2011). Positive arrears primarily accumulate from 2012 onwards when the Central/AICPI index heavily outpaced the State DA rates.
AICPI vs. WBCPI: Why old union documents show a "-16,162" Arrear
You might have seen historical charts circulated by unions (like INTUC Confederation) showing a negative arrear of exactly -16,162 for a Basic Pension of 15,255 during the 2008–2011 period. Here is why that happens and how it compares to the new order:
- The WBCPI Formula (Historical): The old union calculations were based on the West Bengal Consumer Price Index (WBCPI), which changed multiple times a year. Their "Due" DA rates were 2%, 3%, 7%, 10%, 11%, 19%, 25%, and 34%. When compared to what WB actually paid (which was higher), it resulted in a net negative figure of -16,162 for a 15,255 basic.
- The AICPI Formula (New SC Order): The recent Supreme Court judgment and government Memo 3556-F mandate using the All-India CPI (AICPI). The AICPI is updated only once annually in January. The "Due" rates under AICPI are 0% (2008), 8% (2009), 20% (2010), and 35% (2011).
- The Result: Both formulas result in a "BIG ZERO" (no positive arrear) for the 2008-2011 period. The negative arrear amount just looks different because the base index (WBCPI vs AICPI) is different. You can switch between these two formulas using the dropdown in our calculator above!
How the DA Arrear is Calculated (AICPI)
- The Core Formula: DA % = (Average AICPI-IW of the previous calendar year ÷ 130.75 − 1) × 100. This is rounded to the nearest whole percent.
- 100% Neutralisation Explained: Dearness Allowance rises exactly in step with the All-India Consumer Price Index for Industrial Workers (base 2001 = 100) above its 2007 average of 130.75. This is the threshold at which ROPA 2009 pay carries zero DA.
- Monthly Arrear Equation: Monthly Arrear =
Round(Basic Pay × Due DA %)−Round(Basic Pay × DA Paid %). Basic pay refers to pay in the pay band plus grade pay under the ROPA 2009 structure. - Medical Officers (NPA): For doctors drawing Non-Practising Allowance, DA is calculated on Basic Pay plus NPA. NPA under ROPA 2009 is 25% of Pay in Band + Grade Pay (or 30% for WBMES).
Payment Rules & Guidelines under Memo 3556-F(P2)
- Groups A, B and C Employees: The arrear amount will be directly credited to the General Provident Fund (GPF) account.
- Group D Employees: The entire amount will be paid in cash directly to their respective bank accounts.
- Near Retirement: Employees who are within three months of superannuation, and whose GPF final payment has become due, will receive the payment in their bank account instead of the GPF.
- Lock-in Period: The amount credited to the GPF account cannot be considered for any advances or final withdrawal until 31.03.2028.
- Income Tax Implications: The DDO is mandated to deduct tax at source (TDS). The DDO will also first recover any tax that was not previously deducted from the 2016–2019 arrear payout.
- Pensioners & Family Pensioners: The Dearness Relief (DR) arrear falls under Memo 1909-F(P2) and will be paid in cash to bank accounts as per the procedure laid out in Memo 997-F(P2).
❓ Frequently Asked Questions (FAQs)
What exactly does Memo 3556-F(P2) dictate regarding DA?
It formally announces that the entire pending arrear of dearness allowance for the period of 1st April 2008 to 31st December 2015 will be cleared. Crucially, it will be calculated "as per AICPI (100% neutralization)" and disbursed in a single instalment.
Why is there zero arrear shown for the years 2008, 2009, 2010, and 2011?
During the initial years of ROPA 2009 (specifically April 2008 to December 2010), the West Bengal Government actually declared and paid a higher Dearness Allowance percentage than what the AICPI formula yielded on the 2007 base. Because the state paid more than required by the index during that specific window, there is a negative gap, meaning zero positive arrear is owed for those months.
Will the arrear amount be deposited into my bank account or GPF?
It depends on your employee group. If you belong to Group A, B, or C, the arrear will be credited directly to your General Provident Fund (GPF) account and locked until March 31, 2028. If you are a Group D employee, a pensioner, or retiring within 3 months, the amount will be credited to your salary/pension bank account in cash.
Is this DA arrear amount taxable?
Yes. The DA arrear is considered a part of your salary income and is fully taxable. Your Drawing and Disbursing Officer (DDO) will calculate the tax liability and deduct Tax Deducted at Source (TDS) before finalizing the GPF credit or cash payment. You may be able to claim relief under Section 89(1) of the Income Tax Act when filing your returns.
What if I retired from service between 2008 and 2015?
If you retired during this period, you will receive the DA arrear for the months you were in active service, calculated on your basic pay at that time. For the months following your retirement up to December 2015, you will receive Dearness Relief (DR) arrear based on your basic pension. Retirees receive these payments directly in their bank accounts.