Expected DA 2020

Ministry of Labour and Employment has released a new series of Consumer Price Index for Industrial Workers (CPI-IW) with 2016 as base year on 22nd October 2020 from the existing 2001-100. AICPIN is the base to calculate dearness allowance (DA) for government employees, wages for industrial workers and dearness relief for pensioners. Sudden change in Dearness Allowance can’t expect from the new series, but step by step there is a chance of increasing due to inflation. It will take time to get benefit out of it for the central government employees.

The base year of price index numbers will be revised at frequent intervals, generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers. It is primarily used to regulate the dearness allowance of government employees and the workers in the industrial sectors. It is also used in fixation and revision of minimum wages in scheduled employments besides measuring the inflation in retail prices. The new index will assign more weight to spend on services such as education, healthcare, housing, travel and transportation, as spending on these items have gone up, as compared to primary items such as food.

The Report on “New Series of Consumer Price Index for Industrial Workers (Base 2016=100)” is an important publication meant to give insights into the concepts, definitions and methodology related to the new series of CPI-IW with 2016 as base year. This will serve as a useful reference book for researchers, academicians, scholars and all other stakeholders of CPI-IW. As per the recommendations of International LabourOrganisation (ILO), Index Review Committee (IRC) and National Statistical Commission (NSC), the base year of price index numbers should be revised at frequent intervals generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers. The CPI-IW is compiled as per international best practices & guidelines of ILO.

Expected DA from January 2021

Shri Gangwar also released the maiden index with base year 2016 for the month of September, 2020. The Index is compiled for 88 centres and All India. All India index for the month of September, 2020 stands at the level of 118 and linking factor for the conversion of new series index to previous series on base 2001=100 is 2.88.(AICPIN for month September 2001-100 based is 340)

The CPI-IW (2016=100) series replaces the CPI-IW (2001=100) series. The new series is more representative in character and reflects the latest consumption pattern of the industrial workers. Unlike predecessors, the new series has same survey base year and price base which in itself is a major improvement. It is also released in the shortest time span of less than 4 years as never before.

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7th Pay Commission Latest News Today 2019 – 5% Hike in DA for Central Government employees and pensioners before Diwali

DA Announcement before Diwali

More than one crore Central Government employees and pensioners are looking for DA announcement from the month of September. The Central Government has not taken any decision on DA yet. We hope that the announcement of 5% increase in DA additionally from July 2019 will be declared before the grand festival of Diwali.

Also read: 7th CPC DA Hike will announce today for central government employees and pensioners

17% of 7th CPC Matrix Pay

At present, all Central government employees are getting 12% Dearness allowance of their matrix pay and if Govt declare 5% hike in DA, the total DA will become 17%. For example, if an employee gets Rs. 49000 matrix basic pay, he will get enhanced DA will be Rs. 8330 per month (Rs. 5880 + Rs. 2450 = Rs. 8330).

First Time 5% DA

After implementation of 7th Pay Commission, this is the first time 5% increase in DA

Also check: 5% DA increase from July 2019 confirmed for Central Government Employees. 12% becomes 17% due to high inflation

The post DA Announcement before Diwali – 5% Hike in DA for Central Government Employees before Diwali appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

New Delhi: The Union Cabinet is likely to approve hiking dearness allowance to 100 percent from existing 90 percent benefiting 50 lakh employees and 30 lakh pensioners in it meeting scheduled on Friday.

“The Union Cabinet will take a proposal to hike Dearness allowance for its employees and dearness relief for its pensioners to 100 percent this Friday as per agenda listed for the meeting,” a source said.

This increase in the dearness allowance by the UPA-2 government comes ahead of the imposition of the model code of conduct by the Election Commission.

The model code of conduct is likely to come into force with the announcement of the schedule for the forthcoming general elections in a week or so.

Also it would be the second double digit DA hike in a row. The government had announced a hike of 10 percent to 90 percent in September last year, effective from July 1, 2013.

The hike in DA would be effective from the January 1 this year.

As per practice, the government uses Consumer Price Index- Industrial Workers data of the past 12 months to arrive at a quantum for the purpose of any DA hike. Thus, the retail inflation for industrial workers between January 1 to December 31, 2013 would be used to take a final call on the matter.

According to the provisional data released by government on January 31, the retail inflation for factory workers for the month of December stood at 9.13 percent. The revised retail inflation data for January would be released on February 28.

An official said that the preliminary assessment suggests that DA hike will not be less than 10 percent and would be effective from January 1 this year.

Source: http://zeenews.india.com

[http://zeenews.india.com/business/news/economy/dearness-allowance-likley-to-be-hiked-by-10-on-friday_95123.html]

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