DA and DR from July to Dec 2015 – Cabinet Committee may approve tomorrow

DA and DR from July to Dec 2015 – Cabinet Committee may approve tomorrow

As per media news, the Cabinet committee in its meeting tomorrow is likely to approve an additional Dearness Allowance for Central Government employees due from July 2015.

The second installment of this year, from July to December 2015, an additional DA is finalized hike by 6% as per the calculations recommended by 6th CPC. Now the Central Government employees and pensioners are getting 113% DA and DR, after the declaration by the Cabinet Committee on DA, it will become 119%.

6 months of the All India Consumer Price Index (CPI-IW) from Jan to Jun 2015 is the key points to calculate DA and DR from July 2015, the below table describes the calculation clearly…

Simple Tool with input of AICPIN - Expected DA from July 2015 and Jan 2016

Expected DA from July 2015 and Jan 2016 – Simple Tool with input of AICPIN

Expected DA from July 2015 – To wait for the month of June AICPIN data that will be released on July 31 to find out.

Expected DA from July to Dec 2015

What will the additional Dearness Allowance increase be from the month of July to Dec 2015? One has to wait for the AICPIN data for the month of June 2015 that will be released on July 31 to find out.

Central Government employees are not the only ones who are eagerly waiting to find out what the DA percentage hike will be from July to December 2015. Central Pensioners and employees of the banking sectors too are curious to know. Additionally, the employees are working under state governments are also covered in this circle.

It has almost been confirmed that there will be a 6% hike in DA this time. But, it will be absolutely confirmed once the June AICPIN statistics is revealed. The fluctuations of the June AICPIN is not expected to dramatically affect the fate of July’s DA hike, but it will have some impact on the DA hike that will be announced for January 2016.

Click to read more…

AICPIN points for the Month of May to be Announced Tomorrow

AICPIN points for the month of May to be announced Tomorrow

“The Ministry of Labour will announce the ‘All India Consumer Price Index for Industrial Workers’ for the month of May, tomorrow; AICPIN indicates the rise and fall of prices of essential commodities across important towns and cities in the country”.

After significant changes in the Agricultural and Rural AICPIN points in the month of May, there is tremendous curiosity regarding the AICPIN points for the industrial workers. The index of Agricultural and Rural AICPIN had increased by 6 and 7 points to 811 and 816 respectively.

CPI (IW) BY 2001=100 points indicate the fluctuation of prices of essential commodities. If the CPI (IW) points increase, it leads to an increase in the percentage of additional Dearness Allowance for Central Government employees and Pensioners.

If the AICPIN for the month of May increases by 4 points, then the Dearness Allowance for July could be higher by 7%. In other words, from 113%, it could go up to 120%.

The AICPIN points of each month are calculated on the basis of the fluctuations in the prices of 24 commodities, including rice and wheat, in 78 selected cities and towns. The CPI (IW) BY 2001=100 of this month is released towards the end of the following month.

The present method of calculation was recommended by the 6th Central Pay Commission. From 01.01.2016 onwards, it will be calculated based on the recommendations of the 7th Central Pay Commission.

Source: www.cgstaffnews.in

Falling additional DA hike; Decreasing curiosity among employees

Falling additional DA hike; Decreasing curiosity among employees

Along with the decreasing percentage of additional Dearness Allowance, there is also a noticeable fall in interest among employees to know more about ‘Expected DA’…!

“There was tremendous curiosity when initial reports surfaced that ‘Expected DA’ could be as high as 10% in 2013. But, now, when the expectation is fixed at around 5%, readership for the topic has decreased considerably.”

Dearness Allowance for Central Government employees, which is given once every six months, is currently expected to be not more than a very minimal 5%.

Additional Dearness Allowance from July 2015 is based on the fluctuation in price of essential commodities between the months of January and June 2015. With the CPI(IW) data available for only three months as of now, the general prediction is that if the AICPIN falls by 6 points total in three months, the additional DA could be as low as 4% from July 2015.

The chances of a 6% of additional DA increase with effect from July 2015 are very minimal.

Statistics of AICPIN of the next two months will decide if the next additional DA is going to be 5% or 6%.

Why is Dearness Allowance, which is given once every six months in order to help the salaried class manage the increasing prices of essential commodities, so important this time?

What has DA got to do with the 7th Pay Commission? and

What is the connection between the 7th Pay Commission and Dearness Allowance?

Let’s look at them in detail – Click to continue…

National Federation of Indian Railwaymen - Expected DEARNESS ALLOWANCE FROM First July 2015

NFIR View on Expected DA from July 2015

‘National Federation of Indian Railwaymen’ – NFIR ciruclated to its all affiliated unions regarding the ‘Expected DA from July 2015′ after the announcement of AICPIN for the month of March 2015 yesterday by the Labour Bureau. It is expected that the additional dearness allowance is likely to be 118% of pay from July 2015. The letter is reproduced and given below for your information…

EXPECTED DEARNESS ALLOWANCE FROM 01st July 2015

NFIR

National Federation of Indian Railwaymen

3. CHELMSFORD ROAD, NEW DELHI – 110 055

No.1/5(A)Part.1

Dated: 01/05/2015

The General Secretaries of Affiliated Unions of NFIR

Dear Brother,

Sub: Dearness Allowance with effect from 01.07.2015 – reg.

The All India Consumer Price Index for March 2015 was 254 and if it remains as it is for next three (3) months or if it rises to 256, the average is expected to be 253. Consequently, the Dearness Allowance increase is likely to be 118% of pay from July 2015.

The above is for information of affiliates. You are aware that the Government normally announces D.A. revision in September, to be given effect from July.

Yours fraternally,

sd/-

(Dr. M. Raghavaiah)

General Secretary

Source: NFIR

Expected DA From July 2015 – AICPIN for the month of Feb 2015

Expected DA From July 2015 – AICPIN for the month of Feb 2015

The Labour Bureau just now released the index of CPI(IW) for Industrial Workers for the month of February 2015.

According to the press release, the index is decreased by one point and pegged at 253.

No.5/1/2015- CPI

GOVERNMENT OF INDIA

MINISTRY OF LABOUR & EMPLOYMENT

LABOUR BUREAU

`CLEREMONT, SHIMLA-171004

DATED: the 31st March, 2015

Press Release

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

The All-India CPI-IW for February, 2015 decreased by 1 point and pegged at 253 (two hundred and fifty three). On 1-month percentage change, it decreased by (-) 0.39 per cent between January, 2015 and February, 2015 when compared with the increase of (+) 0.42 per cent between the same two months a year ago.

The maximum downward pressure to the change in current index came from Food group contributing (-) 0.66 percentage points to the total change. At item level, Rice, Eggs (Hen), Fish Fresh, Onion, Vegetable items, Sugar, Petrol, Flower/Flower Garlands, etc. are responsible for the decrease in index. However, this decrease was neutralised by Wheat, Wheat Atta, Arhar Dal, Groundnut Oil, Goat Meat, Tea (Readymade), etc., putting upward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.30 per cent for February, 2015 as compared to 7.17 per cent for the previous month and 6.73 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 7.42 per cent against 7.81 per cent of the previous month and 7.56 per cent during the corresponding month of the previous year.

At centre level, Tiruchirapally recorded the highest decline of 7 points followed by Guntur (4 points), Mysore, Chhindwara Siliguri and Puducherry (3 Points each) Among others, 2 points decrease was observed in 15 centres and 1 point in 18 centres. On the contrary, Belgaum and Kodarma centres reported a highest increase of 3 points each followed by Kanpur, Bokaro and Doom-Dooma Tinsukia (2 points each). Among others 1 point increase was observed in 13 centres. Rest of the 21 centres’ indices remained stationary.

The indices of 37 centres are above All India Index and other 40 centres’ indices are below national average. The index of Vishakhapathnam centre remained at par with all-India index.

The next index of CPI-IW for the month of March, 2015 will be released on Thursday, 30th April, 2015. The same will also be available on the office website www.labourbureau.gov.in.

sd/-

(S.S.NEGI)

DIRECTOR

Please click to download the Press Release issued by Labour Bureau