Expected DA from Jan 2015 – Comparison of DA Calculation from 2006 to 2014

Expected DA from Jan 2015 – Comparison of DA Calculation from 2006 to 2014

Expected DA from Jan 2015 – AICPIN Points for September Released – Remains Unchanged at 253

One of the most important department functioning under the Central Government is the Labour Bureau. The department releases a number of important statistics and conducts surveys. In the year 1872, the department had successfully conducted the population census of the entire country. This census gave not only the count of number of persons, but also the number of gainfully employed. Since then every census has thrown useful data on workers in different industries and occupations every 10 years. The bureau also releases official information, economic indicators like Consumer Price Index Numbers for Industrial, Agricultural and Rural Labourers; wage rate indices and data on industrial relations etc. that are followed by a number of government departments.

One such indicator is the monthly Consumer Price Index Numbers (Industrial Workers 2001=100), which is used to calculate the Dearness Allowance for Central Government employees. Prices of 24 essential commodities (from rice to bathing soap) are observed in 78 cities all over the country in order to calculate the average index of CPI(IW).

It is based on these statistics that, once every six months, the Centre announces Dearness Allowance for its employees. Based on the AICPIN(All India Consumer Price Index Numbers) between January and June, and between July and December, the Finance Ministry decides the percentage of hike in Dearness allowance and Dearness Relief according to the recommendations of 6th CPC and informs the Government. The Centre makes its decision after discussing the recommendation during the cabinet meeting.

Now, ‘Expected DA from Jan 2015′ is the first installment of next year and only three months’ data have been collected as of now, for the Dearness Allowance. Accurate D.A percentage can be calculated only after the remaining 3 months’ AICPIN points are announced.

But, we believe that based on October’s AICPIN points, we can conclude if the next D.A hike is going to be for 6% or 7%.

The Dearness Allowance announcements since 2006 have been tabulated and presented, as additional information.

Year wise DA Calculation tables form 2006 to 2014…

           

          

          

         

         

         

         

         

        

 

Source: http://www.cgstaffportal.in

Merger of 50 percent DA may soon be considered by Central Government

Merger of 50 percent DA may soon be considered by Central Government –Sources

Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees  demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.

The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.

The demand would be considered in view of parliament elections

But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.

After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.

Allowances will have no impact on merging DA with basic Pay

The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.

50% DA merger to be declared before DA crosses 100%

Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.

However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that,  the announcement of 50% DA merger is expected from central government.

Source: Merger of DA
[http://centralgovernmentstaffnews.blogspot.in/2014/01/merger-of-50-percent-da-may-soon-be.html]

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of April, 2012

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of April, 2012

Press Information Bureau

Government of India


Ministry of Labour & Employment

31-May-2012 16:53 IST

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of April, 2012

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of April, 2012 increased by 4 points and stood at 205 (two hundred five).

During April, 2012, the index recorded maximum increase of 9 points in Amritsar centre, 8 points each in Jaipur, Madurai and Vadodara centres, 7 points each in Mundakkayam, Bhilwara and Faridabad centres, 6 points in 7 centres, 5 points in 11 centres, 4 points in 15 centres, 3 points in 16 centres, 2 points in 7 centres and 1 point in 10 centres. The index decreased by 2 points in Belgaum centre and 1 point in Munger Jamalpur centre, while in the remaining 3 centres the index remained stationary.

The maximum increase of 9 points in Amritsar centre is mainly due to increase in the prices of Wheat Atta, Rajmah, Vanaspati Ghee, Fresh Milk, Vegetable & Fruit items, Firewood, Washing Soap, etc. The increase of 8 points each in Jaipur, Madurai and Vadodara centres is due to increase in the prices of Rice, Wheat, Arhar Dal, Groundnut Oil, Milk (Cow), Vegetable & Fruit items, Tea (Readymade), Cigarette, Electricity Charges, Barber Charges, Toilet Soap, Washing Soap, Tailoring Charges, etc. The increase of 7 points each in Mundakkayam, Bhilwara and Faridabad centres is due to increase in the prices of Rice, Groundnut Oil, Vanaspati Ghee, Fish Fresh, Vegetable & Fruit items, Tea (Readymade), Bidi, Firewood, Toilet Soap, Washing Soap, Tailoring Charges, etc. The decrease of 2 points in Belgaum centre is due to decrease in the prices of Rice, Jowar, Chillies Dry, Pan Leaf, etc.

The indices in respect of the six major centres are as follows :

1. Ahmedabad – 202

2. Bangalore – 209

3. Chennai – 190

4. Delhi – 188

5. Kolkata – 196

6. Mumbai – 208



The point to point rate of inflation based on CPI-IW(General) for the month of April, 2012 is 10.22% as compared to 8.65% in March, 2012. Inflation based on Food Index attained the level of 10.66% in April, 2012 as compared to 8.16% in March, 2012.



The CPI-IW for May, 2012 will be released on the last working day of the next month, i.e. 29th June, 2012.

Frequently Asked Questions on Consumer Price Index Numbers for Industrial Workers (CPI-IW)

Frequently Asked Questions on Consumer Price Index Numbers for Industrial Workers (CPI-IW)

1. What we mean by base year?

Ans. The index reference period is usually called the base year, it often differs both from the weight-reference period and the price reference period. This is just a matter of rescaling the whole time-series to make the value for the index reference-period equal to 100.

2. Why we need to change the base year?

Ans. In compiling index numbers the older the weights the greater is the divergence between the Current expenditure pattern and that of the weight reference-period. Annually revised weights are desirable but being expensive feature of an index, the base year is usually changed after a few years. Normally a year during which the family budget enquiry is conducted or a period not very distant from the survey period for which reliable price data are available is adopted as the base year. A period affected by developments of serious nature such as war is not adopted as the base year because it cannot be treated as a normal year economically.

3. What is the current base year used by Labour Bureau for compilation of Consumer Price Index Numbers for Industrial Workers?

Ans. Presently, CPI-IW numbers are being complied with base year 2001=100.

4. How many times the base year of CPI-IW has been revised in the CPI-IW in past?

Ans: The compilation of Consumer Price Index Numbers for Industrial Workers on uniform and scientific lines was started on base 1960=100 which was revised to 1982=100 and the existing series i.e. on base 2001=100.

5. Is there any plan in immediate future to revise the base year?

Ans. An exercise/proposal of Base updation of CPI-IW from the existing period 2001=100 to a more recent period is likely to be started soon.