Govt likely to announce 10% DA hike next month

Government uses CPI-IW data for past 12 month or a year to arrive at a number for the purpose of any DA hike

The government is likely to announce a hike in dearness allowance to 90% from existing 80% in September, benefiting about 50 lakh central employees and 30 lakh pensioners ahead of the festival season.

According to official sources, the preliminary assessment suggests that dearness allowance hike will be in the range of 10-11% and would be effective from July 1 this year.

He said the exact number could be calculated only when the revised all India Consumer Price Index for Industrial Workers (CPI-IW) for the month of June will be released on August 30.

According to the provisional data released by government on July 31, the retail inflation for factory workers for the month of June stood at 11.06%, higher than 10.68% in May this year.

As per the practise, the government uses CPI-IW data for past 12 month or a year to arrive at a number for the purpose of any DA hike. Thus, the retail inflation for industrial workers between July, 2012 to June 2013 would be used to take final call on the matter.

“It would be around 10% this time and would be announced in September,” Confederation of Central Government Employees Secretary General K K N Kutty told PTI.

“Besides, raising DA to 90%, the government should merge 50% of the allowance with the basic pay as was our demand. DA breached 50% benchmark long ago”, he said.

As per the practise, the DA is merged with basic pay when it breaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.

Kutty said, “This DA hike won’t help much as actual rise in the cost of living is 171% since January 1, 2011.”

There would be a double digit hike in DA after about three years. It was last in September, 2010 that the government had announced a hike of 10% to be given with effect from July 1, 2010.

DA was hiked to 80% from 72% in April, 2013, effective from January 1, this year.

Source: http://www.business-standard.com

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According to the press report of PTI News, the preliminary assessment suggests that dearness allowance hike will be in the range of 10-11 per cent and would be effective from July 1st this year.

Central Government employees and Pensioners are expecting the announcement of 10% additional Dearness allowance and Dearness relief in earlier of September to avoid unnecessary stress.

The minimum amount of Rs.740 would be increased per month to all Central Government employees with effect from 1st July, 2013. According to their basic pay (Pay in the pay band + Grade Pay) the amount will be increased and also hike in Transport Allowance.

Usually, arrears for the month of July and August would be paid in September and from September would be paid in salary itself. More than eighty lakh existing and retired employees are benefiting the pay hike, particular in the festival season.

Source: http://centralgovernmentemployeesnews.in/2013/08/cabinet-may-approve-10-da-hike-in-september/

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Therefore DA from July, 2013 will be 90% and will be announced in September or October in this year.

This 3 point increase in June, 13 AICPIN has also confirmed minimum 7% increase in Dearness Allowance in Jan-2014.  Next two months’ AICPIN will give exact figure of expected DA.   This time calculation says that if no any increase occurred in next 6 months in AICPIN the 7% increase in expected DA of Jan-2014 is confirm.  See second table below:-

Now the above table and growth trends in AICPIN and inflation also indicates 100% DA from Jan-2014 and 25% increase in allowance.

DOWNLOAD: EXCEL FILE FOR EXPECTED DEARNESS CALCULATION TO CALCULATE YOURSELF 

Source: PIB via karnmk.blogspot.in/

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Consumer Price Index Numbers for Industrial Workers (CPI-IW) June 2013

According to a press release issued today by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for June, 2013 rose by 3 points and pegged at 231 (two hundred and thirty one). On 1-month percentage change, it increased by 1.32 per cent between May and June compared with 0.97 per cent between the same two months a year ago.

The largest upward pressure to the change in current index came from Food group contributing 2.98 percentage points to the total change. At item level, Rice, Fish Fresh, Eggs (Hen), Poultry (Chicken), Milk, Onion, Ginger, Chillies Green, Potato, Tomato & other Vegetables, Tea Leaf, Tea (Readymade), Bidi, Cigarette, Electricity Charges, Doctor’s fee, Medicine (Allopathic), Petrol, etc. are responsible for the rise in index. However, this was compensated by Wheat, Groundnut Oil and Mustard Oil putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 11.06 per cent for June, 2013 as compared to 10.68 per cent for the previous month and 10.05 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 14.86 per cent against 13.24 per cent of the previous month and 10.45 per cent during the corresponding month of the previous year.

At centre level, Pune, Bhilai and Guntur recorded the highest increase of 8 points each followed by Jalpaiguri, Asansol, Mumbai, Bokaro, Siliguri and Kanpur (7 points each) and Warrangal and Vijaywada (6 points each). Among others, 5 points rise was registered in 9 centres, 4 points in 8 centres, 3 points in 12 centres, 2 points in 15 centres, and 1 point in 14 centres. On the contrary, a decline of 1 point each was recorded in Amritsar and Coimbatore centres. Rest of the 7 centres’ indices remained stationary.

The indices of 39 centres are above All-India Index and other 38 centres’ indices are below national average. The index of Bhilwara centre remained at par with all-India index.

The next index of CPI-IW for the month of July, 2013 will be released on Friday, 30 August, 2013. The same will also be available on the office website www.labourbureau.gov.in.

PIB News

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 GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(Railway Board)

S.No.PC-VI/ 323
No.PC-V/2009/A/DA/1

RBE No.70/2013
New Delhi, dated 16/07/2013

The General Managers/CAO(R),
All Indian Railways & PUs
(As per standard mailing list)

Sub :- Rates of Dearness Allowance applicable w.e.f. 01-01-2013 to the Railway employees continuing to draw their pay in the pre-revised scale as per 5th CPC.

In continuation of Ministry of Railways letter of even Number dated 22-11-2012, (PC-VI/305, RBE No.131/2012) revising rates of Dearness Allowance w.e.f. 01/07/2012 in respect of Railway Servants who continue to draw their pay and emoluments in the pre-revised scales of pay (5th CPC Scales), the rates of Dearness Allowance admissible to these categories of employees shall be enhanced from the existing rate of 151% to 166% w.e.f. 01/01/2013. All other conditions as laid down in the Board’s letter dated 17/11/2008 (RBE No.179/2008) will continue to apply.

2. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

3. Hindi version is enclosed.

(Authority: MoF’s OM No.1(3)/2008-EII (B), dated 02/05/2013)

sd/-
(NP.Singh)
Dy.Director, Pay Commission-V

Railway Board
Source: NFIR

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Since the implementation of 6CPC from 1-1-2006, the consumer price index number for industrial worker is not coming down ever but it is increasing month by month. Similarly the rate of dearness allowance paid to central government employees also increasing at the interval of every six months period. The rate of dearness allowance was at zero level on 01-01-2006. After six years from implementation of 6CPC, now the dearness allowance stands at 80% level. The average increase in the dearness allowance is at the rate of 13% per year. Actually there is nothing to rejoice over the increase of dearness allowance. The Dearness allowance is nothing but the reflection of consumer price index.

Likewise the consumer price index is determined by increase in the prices of basket of identified essential commodities. The increase of CPI number is not good any way for either the government employees or common people. Whatever the money the central government employees are supposed to get from the dearness allowance hike will be swallowed by the essential commodities for which they have to spend every month, since the prices of all the essential commodities are increasing at the alarming rate.

The formula for calculating dearness allowance is:

( Avg of AICPI for the past 12 months – 115.76)*100/115.76

If we apply this in the formula given above the answer is = 90.120

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Press Information Bureau
Government of India
Ministry of Labour & Employment

31-May-2013 18:07 IST

Consumer Price Index Numbers for Industrial Workers (CPI-IW) April 2013.

According to a press release issued today by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for April, 2013 rose by 2 point and pegged at 226 (two hundred and twenty six). On 1-month percentage change, it increased by 0.89 per cent between March and April  compared with 1.99 per cent between the same two months a year ago.

The largest upward contribution to the change in current index came from Food group which increased by 2.08 per cent, contributing 2.07 percentage points to the total change. This was followed by Fuel & Light group with 0.91 percent increase contributing 0.12 percentage points to the change.  At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Arhar Dal, Milk (Cow), Ginger, Root & Green Non-leafy vegetables, Tea Leaf, Tea (Readymade), Snack Saltish, Cigaratte, Electricity Charges, Medicine (Allopathic) etc. However, this was  compensated by Mustard Oil and Petrol putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 10.24 per cent for April, 2013 as compared to 11.44 per cent for the previous month and 10.22  per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 12.39 per cent against 13.21 per cent of the previous month and 10.66 per cent during the corresponding month of the previous year.

At centre level, Mysore recorded the largest increase of 13 points followed by Giridih, Bengaluru  and Puducherry (8 points each) and Darjeeling (7 points). Among others, 6 points rise was registered in 6 centres, 5 points in 2 centres, 4 points in 7 centres, 3 points in 15 centres, 2 points in 17 centres and  and 1 point in 13 centres. On the contrary, a decline of 4 points was reported in  Godavarikhani, 2 points in 4 centres and 1 point in one centre. Rest of the  7 centres’ indices remained stationary.

The indices of 40 centres are above All-India Index and other 35 centres’ indices are below national average. The index of  Chandigarh, Haldia and Ahmedabad centres remained at par with all-India index.

The next index of CPI-IW for the month of May, 2013 will be released on Friday, 28 June, 2013. The same will also be available on the office website www.labourbureau.gov.in.

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Consumer price index numbers for industrial workers (CPI-IW) March 2013

According to a press release issued today by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for March, 2013 rose by 1 point and pegged at 224 (two hundred and twenty four . On 1-month percentage change, it increased by 0.45 per cent between February and March compared with 1.01 per cent between the same two months a year ago.

The largest upward contribution to the change in current index came from Food group which increased by 0.84 per cent, contributing 0.82 percentage points to the total change. This was followed by Miscellaneous group with 0.53 per cent increase contributing 0.26 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Fish Fresh, Goat Meat, Vegetable Green & non-Leafy, Apple, Tea (Readymade), Firewood, Medicine (Allopathic), Private Tuition Fee, Bus Fare, Petrol, etc. However, this was compensated by Mustard Oil, Eggs (Hen), Poultry (Chicken), Onion, Potato and Sugar putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 11.44 per cent for February, 2013 as compared to 12.06 per cent for the previous month and 8.65 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 13.21 per cent against 14.98 per cent of the previous month and 8.16 per cent during the corresponding month of the previous year.

At centre level, Salem recorded the largest increase of 7 points followed by Sholapur and Quilon (6 points each). Among others, 5 points rise was registered in 4 centres, 4 points in 2 centres, 3 points in 4 centres, 2 points in 12 centres and 1 point in 18 centres. On the contrary, a decline of 2 points was reported in Jharia, Chennai, Siliguri, Mariani-Jorhat, Asansol and Kodarma and 1 point in 10 centres. Rest of the 19 centres’ indices remained stationary.

The indices of 34 centres are above All-India Index and other 43 centres’ indices are below national average. The index of Ajmer centre remained at par with all-India index. The next index of CPI-IW for the month of April, 2013 will be released on Friday, 31 May, 2013. The same will also be available on the office website www.labourbureau.gov.in.

PIB

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“No any recommendation in 6th CPC Report on merger of 50% Dearness allowance with basic pay at any stage”.

Sixth Pay Commission recommendation on Merger of 50% Dearness Allowance and sanctioning of DA to central government employees

Source: www.gservants.com

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