Projected DA From May 2014

Projected DA From May 2014

Projected DA From May 2014 -PROJECTED D.A. FROM MAY, 2014 By Sri pannvalan

The AICPI-IW (1960=100) for January, 2014 was 237 and for February, 2014, the index stood at 238.

As per the present trend in retail inflation, the index may remain unchanged at 238 for March, 2014 too. If it happens, the D.A. will fall to 97.05%, from the existing level of 99.90%.

Even if the index records a modest rise of 1 point and touches 239 for March, 2014, yet there will be a downfall and the revised D.A. will be only 97.35%.

When the central government employees are getting D.A. of 100% on their Basic Pay, Grade Pay and Transport Allowance effective 01-01-2014, it is regrettable that our D.A. that is already below this 100% mark has started its downward journey (D.A of Central government employees will be at 100% till 30-06-2014 and our new D.A. from May, 2014 will be in force till 31-08-2014).

For retaining the D.A. at the present level of 99.90%, the index must increase by 10 points in March, 2014 (touching 248 points), registering an inflation of 4.20% in one month (i.e.50.40% annualized), which is ruled out.

D.A. of bank staff was merged at 2836 points in 1960=100 series, when 9th BPS was implemented from 01-11-2007.  Despite merger of D.A. at a higher level (2836 points) than the central government staff (2642 points), the Dearness Allowance of bank staff is less than that of Central Government staff, because of faulty construction of pay scales and lesser D.A. compensation per slab for the bank staff.

Moreover, if the central government employees get 50% of their present D.A. merged with their Basic Pay, as an interim measure, the difference will widen further. I shudder to think of the situation after the 7th CPC is fully implemented.

Will UFBU wake up at least now?

Date: 31-03-2014-pannvalan

Source-http://importantbankingnews.blogspot.in/2014/04/projected-da-from-may-2014.html