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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Expected DA 2020 –
Central Government Employees News

F.No. 5/1/2020-CPI

Press Release

CLEREMONT, SHIMLA-171004
DATED: 31st August, 2020

Consumer Price Index for Industrial Workers (CPI-IW) – July, 2020

The Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of the retail prices of selected items collected from 289 markets spread over 78 industrially important centres in the country. The index is compiled for 78 centres and All-India and is released on the last working day of succeeding month. The index for the month of July, 2020 is being released in this press release.

The All-India CPI-IW for July, 2020 increased by 4 points and stood at 336 (three hundred and thirty six). On 1-month percentage change, it increased by (+) 1.20 per cent between June and July, 2020 compared to (+) 0.95 per cent increase between corresponding months of previous year.

The maximum upward pressure in current index came from Housing group contributing (+) 2.28 percentage points to the total change. The Food index further accentuated the overall index by (+) 1.77 percentage points. At item level, Wheat Atta, Mustard Oil, Milk (Buffalo), Green Chillies, Brinjal, Gourd, Palak, Parval, Potato, Tomato, Snack Saltish, Cooking Gas, Fire Wood, Bus Fare, Petrol, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was checked by Rice, Fish Fresh, Goat Meat, Poultry (Chicken), Lemon, etc., putting downward pressure on the index.

At centre level, Jamshedpur recorded the maximum increase of 36 points followed by Haldia (23 points), Tiruchirapally (13 points), Kodarma and Faridabad (12 points each), Srinagar (11 points), Lucknow and Doom-Dooma Tinsukia (10 points each). Among others, 8 points increase was observed in 2 centres, 7 points in 5 centres, 6 points in 8 centres, 5 points in 7 centres; 4 points in 10 centres, 3 points in 9 centres, 2 points in another 9 centres and 1 point in yet another 9 centres. On the contrary, Madurai recorded the maximum decrease of 5 points. Among others, 3 points decrease was observed in 1 centre, 2 points in another 1 centre and 1 point in 2 centres. Rest of 6 centres’ indices remained stationary. The indices of 31 centres are above All-India Index and 45 centres’ indices are below national average.

The indices of Chhindwara & Jalandhar centres remained at par with All-India Index.

Year-on-year inflation based on all-items stood at 5.33 per cent for July, 2020 as compared to 5.06 per cent for the previous month and 5.98 per cent during the corresponding month of the previous year. Similarly, Food inflation stood at 6.38 per cent against 5.49 per cent of the previous month and 4.78 per cent during the corresponding month a year ago.

The next issue of CPI-IW for the month of August,2020 will be released on Wednesday 30th September,2020. The same will also be available on the office website www.labourbureaunew.gov.in.

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