Cabinet approved 6% DA and DR for Central Govt Employees and Pensioners from 1.1.2016

Cabinet approved 6% DA and DR for Central Govt Employees and Pensioners from Jan 2016

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.1.2016

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.01.2016. This represents an increase of 6 percent over the existing rate of 119 percent of the Basic Pay/Pension, to compensate for price rise.

This will benefit about 50 lakh Government employees and 58 lakh pensioners.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be of Rs. 6796.50 crore per annum and Rs.7929.24 crore respectively, in the financial year 2016-17 (for a period of 14 months from January, 2016 to February, 2017).

Source: PIB News

AICPIN for November 2015 – Expected DA from Jan 2016

AICPIN for November 2015 – Expected DA from Jan 2016

No. 5/1/2015-CPI

GOVERNMENT OF INDIA

MINISTRY OF LABOUR & EMPLOYMENT

LABOUR BUREAU

`CLEREMONT’, SHIMLA-171004

DATED: 31st December, 2015

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – November, 2015

The All-India CPI-IW for November, 2015 increased by 1 point and pegged at 270 (two hundred and seventy). On 1-month percentage change, it increased by (+) 0.37 per cent between October and November, 2015 which was static between the same two months a year ago.

The maximum upward pressure to the change in current index came from Food group contributing (+) 0.64 percentage points to the total change. At item level, Wheat, Urd Dal, Mustard Oil, Eggs (Hen), Milk, Chillies-Dry, Garlic, Carrot, Lady’s Finger, Peas, Potato, Tomato, Tea (Readymade), Sugar, Flower/Flower Garlands, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was restricted by Chillies Green, Onion, Brinjal, Cauliflower, Green Coriander Leaves, Methi, Radish, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.72 per cent for November, 2015 as compared to 6.32 per cent for the previous month and 4.12 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 7.86 per cent against 7.50 per cent of the previous month and 2.56 per cent during the corresponding month of the previous year.

At centre level, Madurai reported the highest increase of 11 points followed by Tiruchirapally (9 points), Jalandhar, Puducherry and Salem (7points each) and Mundakkayam (6 points). Among others, 4 points rise was observed in 5 centres, 3 points in 7 centres, 2 points in 12 centres and 1 point in 10 centres. On the contrary, Jamshedpur, Tripura and Rangapara-Tezpur recorded a maximum decrease of 4 points each followed by Kolkata, Amritsar and Kodarma (3 points each). Among others, 2 points decrease was observed in 13 centres and 1 point in 8 centres. Rest of the 11 centres’ indices remained stationary.

The indices of 36 centres are above All India Index and other 41 centres’ indices are below national average. The index of Salem centre remained at par with all-India index.

The next issue of CPI-IW for the month of December, 2015 will be released on Friday, 29th January, 2016. The same will also be available on the office website www.labourbureaunew.gov.in.

sd/-

(SHYAM SINGH NEGI)

DEPUTY DIRECTOR GENERAL

Authority: http://labourbureau.nic.in/

6% Dearness Allowance hike from July 2015 – Central Cabinet approved yesterday

6% DA hike from July 2015 – Central Cabinet approved yesterday

“The central cabinet has given its approval yesterday to a six percent hike in dearness allowance from July 2015 onwards, for Central Government employees and pensioners.”

Central Government employees and pensioners get two dearness allowance hikes each year. The dearness allowance for the period of months between January to June is given in March; the DA hike for July to December is given in September.

Accordingly, the second installment of Dearness Allowance, for the months of July to December, has been fixed at 6 percent. The cabinet gave its approval yesterday. The current DA of 113% will, from 01.07.2015 onwards, increase to 119%.

Following the hike, Central Government employees will get a minimum increment of Rs.420 per month. The increase is dependent on the basic pay(Band Pay + Grade Pay) of the employees. For example, let us consider an employee who has been working for 25 years, and receives a basic pay of Rs.16,000 per month. He will get a DA hike of Rs.960.

The current method of calculation of DA was prescribed by the 6th Pay Commission. The method, which has been in effect for nearly ten years now, will be used one last installment to calculate the DA of January (01.01.2016). The subsequent Dearness Allowance calculations will be made based on the method recommnded by the 7th Pay Commission. The Commission is expected to submit its recommendations to the Centre by December this year. The recommended revised method of calculations for DA in the report will be follow to arrive DA from 1.1.2016.

Towards the end of this month, the Ministry of Finance will issue relevant orders to give out six percent DA payment to the Central Government employees and pensioners. Only then will the increased DA be given to the employees, along with the arrears of the past two months (July and August).

78 cities were selected from all over the country and the fluctuations in the prices of essential commodities in these cities are tracked. These fluctuations are used to calculate the monthly points (CPI-IW BY 2001 = 100), which are further used to arrive at the dearness allowance.

Source: Govtenews

AICPIN for July 2015 – ‘Expected DA from January 2016’ begins...

AICPIN for the month of July 2015 – ‘Expected DA from January 2016’ begins 

2 Points increased and pegged at 263.

As per the press release of Labour Bureau today, the All India Consumer Price Index (IW) is increased by two points from the existing level and stands at 263.

The CPI-IW for the month of August, 2015 will be released on 30st September, 2015.