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.

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Announce the Dearness Allowance from January 2015: BPMS to FM

The BPMS has requested Finance Minister to declare the Dearness Allowance from January 2015. Since this federation is affiliated to BMS which is a trade union wing of Bharatiya Janata Party, bapus believe, its prayer would be answered positively by the central government.

BPMS in its letter dated 1.4.2015, invited the attention of the Finance Minister that the Ministry of Finance has not yet announced the rate of dearness allowance payable from 01.01.2015. This was not only creating financial hardships but creating discontentment amongst the employees also. It has been mentioned in the letter that it was the practice of the Finance Ministry to declare the Dearness allowance hike payable from January to central Government employees, in the month of March. Therefore it requested finance ministry to declare the dearness allowance without any delay. The copy of the letter is given below

Bharatiya Pratiraksha Mazdoor Sangh

(An All India Federation of Defence Workers)

Ref: BPMS/MOF/DA/190(8/2/L)

Dated: 1.4.2015

To,

The Finance Minister,

Govt of India,

New Delhi.

Subject: Payment of Dearness Allowance w.e.f.01.01.2015

Hon’ble Sir,

With due regards, it is submitted that on the basis of Consumer Price Index for Industrial Workers, it has been the previous pratice of the Finance Ministry that it declares the Dearness Allowance upto the last week of March payable to Central Government employees with effect from 1st January of the year.

But this year the Ministry of Finance has not yet announced the rate of dearness allowance payable from 01.01.2015. This is not only creating financial hardships but creating discontentment amongst the employees also.

Therefore, you are requested to take appropriate action so that all the Central Government employees may get their legitimate justify of cuurent rate of DA without further delay.

Thanking you.

Sincerely yours,

sd/-

(M.P.Singh)

General Secretary

Source: BPMS

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Delay in Announcement of DA Hike from January 2015

Since the implementation of the recommendations of the 4th central pay commission in 1986, the announcement of approval and the order for granting Dearness Allowance to government employees were issued in March and September itself until it was violated once under UPA regime. In 2013, the approval for granting DA hike due from January 2013 was delayed inordinately. All the central government employees had waited patiently up to 31st March 2013. Even 1st and 2nd week of April 2013, there was no signs announcing the DA hike by the Central government. Then, the federations like AIRF and Confederation of central government employees and workers have raised objection over the inordinate delay of announcing DA. And they wrote letters to the Central Government to declare the Dearness Allowance immediately to avoid the confrontation.

While briefing the situation, the Confederation of central government employees and workers has mentioned in the editorial of their blog on 17th April 2013 that ‘This naturally is quiet disturbing, especially in the time of galloping price line. The employees have, in the past, fought bitterly for grant of DA and the 3rd CPC gave a definite formula for DA in the aftermath of the one day strike on 19th September 1968. We cannot allow the hard won DA to be tampered with.’

The next day, ie on 18th April 2013 the union cabinet approved the DA hike which is due from January 2013.

This time the NDA Government started repeating the same story in its first year itself. As we mentioned earlier the DA hike from July 2014 has been announced un expectedly on 4th September 2014. So there was huge expectation this time that the present government would not make any delay in announcing the Payment dearness allowance from January 2015. But it seems that the government finds no time to take any decision over the issue of 50 Lakh Central government employees and Pensioners. Whether the central government expects the federations to plead for announcing DA hike? Or it really has no time to decide on this issue?

However, yesterday the Ministry of Finance issued a clarification dated 1st March 2015, in which it has been clarified that a fake order for payment of Dearness Allowance was being circulated in Government Departments/offices and all Ministries/Departments and Central Government offices were advised not to take cognisance of these fake instructions being circulated in Government offices.

To avoid confusion and frustration among central government employees, it is expected that the central government should announce its approval for Payment of Dearness Allowance from January 2015 immediately.

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Anticipated DA From January 2014: AICPIN for October 2013

Anticipated DA From January 2014: AICPIN for October 2013

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

According to a press release issued by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for October, 2013 rose by 3 points and pegged at 241 (two hundred and forty one). On 1-month percentage change, it increased by 1.26 per cent between September and October compared with 0.93 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 2.53 percentage points to the total change. At item level, Rice, Wheat Atta, Fish Fresh, Goat Meat, Milk (Cow & Buffalo), Pure Ghee, Onion, Vegetable items, Tea Readymade, Electricity Charges, etc.. are responsible for the rise in index. However, this was compensated to some extent by Groundnut Oil, Ginger, Petrol, putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 11.06 per cent for October, 2013 as compared to 10.70 per cent for the previous month and 9.60 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 15.02 per cent against 13.36 per cent of the previous month and 9.91 per cent during the corresponding month of the previous year.

At centre level, Bhavnagar recorded the highest increase of 9 points each followed by Ahmedabad, Labac Silchar and Kodarma (8 points each) and Vadodara and Surat (7 point each). Among others, 6 points rise was registered in 8 centres, 5 points in 10 centres, 4 points in 8 centres, 3 points in 9 centres, 2 points in 10 centres and 1 point in 11 centres. On the contrary, Belgaum and Chhindwada centres reported a decline of 3 points each followed by Mercara (2 points) and Salem, Hubli Dharwar and Puducherry (1 point each). Rest of the 15 centres’ indices remained stationary.

The indices of 39 centres are above All-India Index and other 38 centres’ indices are below national average.

The next index of CPI-IW for the month of November, 2013 will be released on Tuesday, 31 December, 2013. The same will also be available on the office website www.labourbureau.gov.in

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The Expected DA from January 2014 will be at 100% to 102%

Expected DA from January 2014

The rate of Dearness Allowance payable to central Government Employees is arrived from a prescribed formula. In which the main component is the Average AICPIN for Industrial Workers for twelve months prior to every January and July of every year. So it is quite obvious that everyone wants to know the Consumer Price Index Numbers for Industrial Workers of every month. So they can calculate the rate of Dearness Allowance approximately after every six months.Expected DA from January 2014

The AICPIN for Industrial workers for the month of July has been released by Labour Bureau to day. As this is the seventh month’s AICPIN , we need still five months AICPIN to calculate the rate of Dearness Allowance to be paid to central Government Employees from January 2014. But with these 7 months CPI points, the expected DA from January 2014 can be arrived approximately.

If we look at the increase rate of the AICPIN for the 12 months starting from January 2012 to December 2012, the AICPIN for the month of January 2012 was 198 and for the month of December 2012 was 219. The total increase for the year was 21 points.

For the next twelve months starting from July 2012 to June 2013, the AICPIN for July 2012 was 212 and June 2013 was 231 and the total increase was 19 points.

So we can expect that for these twelve months from January 2013 to December 2013 the increase will be more than 20 points. It should be noticed that the AICPIN is increased by 4 points for the month of July 2013. This trend is expected to be continued as the Rupee is falling against Dollar consistently. It will have a considerable impact on the prices of basket of essential commodities and Consumer Price Index too. The month of January has been started with 221 points, and this July 2013 touched 235 points level. Up to this month the total increase is 14 points. As this is the seventh month of these twelve months, the remaining 5 months will have a increase of 10 to 15 points level. So the total increase for this year will be of 24 to 29 points. According to this summary the Average AICPIN for these twelve months will be from 233 points to 234 points.

Taking all the above factors into consideration, if we apply this in the formula prescribed for calculating the rate of Dearness Allowance, the answer is as follows:

The Expected DA from January 2014 will be at 100% to 102% level

Source : gservants.com

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DEARNESS ALLOWANCE INCREASE BY 8% - WILL GET ITS APPROVAL FROM GOVERNMENT TODAY?

DEARNESS ALLOWANCE  INCREASE BY  8%  - WILL GET ITS APPROVAL FROM  GOVERNMENT  TODAY?

Amidst of very busy schedule with so many activities to day,Can the Government  able to spare some time on taking decision ragarding releasing of additional installment of Dearness Allowance for central Government employees with effect from 1st  January 2013?.

As the Cabinet committee on Economic Affairs has already met on 18-03-2013, the possibilities of holding  another meeting in the same week are very  less. But the current session of parliament is going to be concluded on tomorrow as per the schedule, it seems that the Government may consider to take a decision on increasing dearness allowance for central government employees positively in a day or two.

Source: gservants.com

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All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of May, 2012

All India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of May, 2012

                               

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of May, 2012 increased by 1 point and stood at 206 (two hundred six).

During May, 2012, the index recorded maximum increase of 6 points each in Belgaum, Jharia and Coonoor centres, 5 points in Guwahati centre, 4 points in 8 centres, 3 points in 9 centres, 2 points in 17 centres, 1 points in 15 centres. The index decreased by 4 points each in Bhilwara and Guntur centres, 2 points in 4 centres and 1 point in 5 centres, while in the remaining 14 centres the index remained stationary.

            The maximum increase of 6 points in Belgaum centre is mainly due to increase in the prices of Rice, Groundnut Oil, Fish Fresh, Vegetable & Fruit items, Snack Sweet, Bidi, Cigarette, Refined Liquor, Pan Leaf, Toilet Soap, etc. In Jharia centre the increase of 6 points is due to increase in the prices of Masur Dal, Vegetable & Fruit items, Sugar, Snack Saltish, Snack Sweet, Country Liquor, Firewood, Clothing items, Doctor’s Fee, Cycle Rickshaw Charges, Repair Charges, Petrol, Toilet Soap, Washing Soap, etc. and the increase of 6 points in Coonoor centre is due to increase in the prices of Rice, Poultry (Chicken), Eggs (Hen), Vegetable & Fruit items, Tea (Readymade), Cigarette, Tailoring Charges, etc. The increase of 5 points in Guwahati centre is due to increase in the prices of Wheat Atta, Pork, Fish Fresh, Vegetable items, Snack Sweet, Tea Leaf, Tea (Readymade), Private Tuition Fee, etc. The decrease of 4 points in Bhilwara centre is due to decrease in the prices of Wheat, Vegetable & Fruit items, etc. and in Guntur the decrease of 4 points is mainly due to decrease in the prices of Eggs (Hen), Tamarind, Vegetable & Fruit items, Soap Nut, etc.

The indices in respect of the six major centres are as follows :

1. Ahmedabad 205

 2. Bangalore  212

3. Chennai  192

4. Delhi   189 

5. Kolkata  197

6. Mumbai  208

            The point to point rate of inflation based on CPI-IW(General) for the month of May, 2012 is 10.16% as compared to 10.22% in April, 2012. Inflation based on Food Index declined marginally to 10.61% in May, 2012 from 10.66% in April, 2012.

            The CPI-IW for June, 2012 will be released on the last working day of the next month, i.e. 31st July, 2012

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Expected da from july 2012

Expected da from july 2012

    Again the Dearness Allowance fever started among all the central government employees, as the time for releasing additional installment of dearness allowance to the Central Government Employees and Dearness relief to pensioners is getting closer. Assumption, predictions and calculations on the rate of Dearness Allowance, which is going to be raised from July 2012, is the hottest subject of Central Government Employees to talk about.

    The reason is very simple. The unbelievable Price hike of petrol and essential commodities will swallow the major portion of their salary .In this condition providing quality education to the children is a very big challenge for working class. The rise in Dearness Allowance alone will not solve all financial problems of central government employees especially those who are in Pay Band –I. But they don’t have any other option to raise their income apart from promotion, annual increment and Dearness Allowance. So their expectation over Dearness Allowance in every six month is inevitable. At present the rate of dearness allowance is 65%. The AICPIN-IW for April 2012 has been released recently. The AICPIN-IW has increased 4 points and reached 205. If the same trend continues for the coming two months, the Dearness Allowance may witness 7% increase and so that we can expect that the rate of DA from July 2012 will touch 72% level

courtesy: gservants.com

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Consumer Price Index Numbers for Industrial Workers - FAQ

Consumer Price Index Numbers for Industrial Workers - FAQ

Q .1   What we mean by base year?

Ans.  The index reference period is usually called the base year, it often differs both from the weight-reference period and the price reference period. This is just a matter of re scaling the whole time-series to make the value for the index reference-period equal to 100.

Q . 2   Why we need to change the base year?

Ans.  In compiling index numbers the older the weights the greater is the divergence between the Current expenditure pattern and that of the weight reference-period. Annually revised weights are desirable but being expensive feature of an index, the base year is usually changed after a few years. Normally a year during which the family budget inquiry is conducted or a period not very distant from the survey period for which reliable price data are available is adopted as the base year. A period affected by developments of serious nature such as war is not adopted as the base year because it cannot be treated as a normal year economically.

Q .3 What is the current base year used by Labour Bureau for compilation of Consumer Price Index Numbers for Industrial Workers?

Ans.  Presently, CPI-IW numbers are being complied with base year 2001=100.

Q .4  How many times the base year of CPI-IW has been revised in the CPI-IW in past?

Ans.  The compilation of Consumer Price Index Numbers for Industrial Workers on uniform and scientific lines was started on base 1960=100 which was revised to 1982=100 and the existing series i.e. on base 2001=100.

Q .5    Is there any plan in immediate future to revise the base year?

Ans.   An exercise/proposal of Base updation of CPI-IW from the existing period 2001=100 to a more recent period is likely to be started soon.

source:govtempdiary

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All-India Consumer Price Index Numbersfor Industrial Workers on Base 2001=100 for the Month of March 2012

All-India Consumer Price Index Numbersfor Industrial Workers on Base 2001=100 for the Month of March 2012

                           All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of March, 2012 increased by 2 points and stood at 201 (two hundred one).

                                During March, 2012, the index recorded maximum increase of 7 points each in Bhilwara, Vijaywada  and  Salem centres, 6 points each in Belgaum, Ajmer, Ghaziabad and Mundakkayam centres, 5 points in 3 centres, 4 points in 6 centres, 3 points in 12 centres, 2 points in 19 centres and 1 point in 19 centres. The index decreased by 2 points in Tripura centre and 1 point each in Darjeeling, Sholapur and Puducherry centres, while in the remaining 8 centres the index remained stationary.

            

                  The maximum increase of 7 points each in Bhilwara, Vijaywada  and  Salem centres is mainly due to increase in the prices of Rice, Wheat, Groundnut Oil, Poultry (Chicken), Vegetable & Fruit items, Bidi, Cigarette, Dhoti (Cotton), Saree (Synthetic), Shirting Cloth (Synthetic), Trouser Cloth (Synthetic), Medicine (Allopathic), Toilet Soap, Tailoring Charges, etc. The increase of 6 points each in Belgaum, Ajmer, Ghaziabad and Mundakkayam centres is due to increase in the prices of Rice, Wheat, Jowar, Groundnut Oil, Milk (Buffalo), Vegetable & Fruit items, Tea (Readymade), Snack (Sweet), Snack (Saltish), Firewood, Saree (Synthetic), Toilet Soap, Tailoring Charges, etc. The decrease of 2 points in Tripura centre is due to decrease in the prices of Rice, Wheat Atta, Fish Fresh, Onion, Vegetable items, Sweater, etc.

                  The indices in respect of the six major centres are as follows :

1. Ahmedabad   201

2. Bangalore   206

3. Chennai   187 

4. Delhi     185 

5. Kolkata    190

 6. Mumbai   204

                     The point to point rate of inflation based on CPI-IW(General) for the month of March, 2012 is 8.65% as compared to 7.57% in February, 2012. Inflation based on Food Index attained the level of 8.16% in March, 2012 as compared to 5.08% in February, 2012.

                 

                       The CPI-IW for April, 2012 will be released on the last working day of the next month, i.e. 31st May, 2012

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All India Consumers Price Index for Industrial Workers for the Month of February, 2012

All India Consumers Price Index for Industrial Workers on Base 2001=100 for the Month of February, 2012

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of February, 2012 increased by 1 point and stood at 199 (one hundred & ninety nine).

During February, 2012, the index recorded maximum increase of 5 points in Puducherry centre, 4 points each in Ahmedabad, Bangalore and Mariani Jorhat centres, 3 points in 4 centres, 2 points in 10 centres and 1 point in 30 centres. The index decreased by 5 points in Quilon centre, 3 points each in Tiruchirapally and Salem centres, 2 points in 2 centres, 1 point in 8 centres, while in the remaining 17 centres the index remained stationary.

The maximum increase of 5 points in Puducherry centre is mainly on account of increase in the prices of Rice, Goat Meat, Poultry (Chicken), Curd, Snack Saltish, Country Liquor, Refined Liquor, Shirting Cloth (Synthetic), Bus Fare, Auto-rickshaw Fare, Barber Charges, Flower/Flower Garlands etc. The increase of 4 points each in Ahmedabad, Bangalore and Mariani Jorhat centres is mainly due to increase in the prices of Rice, Groundnut Oil, Mustard Oil, Goat Meat, Fish Fresh, Vegetable & Fruit items, Tea (Readymade), Electricity Charges, Flower/Flower Garlands, etc. The decrease of 5 points in Quilon centre is due to decrease in the prices of Coconut Oil, Fish Fresh, Onion, Vegetable & Fruit items, etc. The decrease of 3 points each in Tiruchirapally and Salem centres is due to decrease in the prices of Rice, Eggs (Hen), Onion, Garlic, Tamarind, Chillies Dry, Vegetable items, Flower/Flower Garlands, etc.
The indices in respect of the six major centres are as follows :

1. Ahmedabad     196
2. Bangalore  204
3. Chennai   186

4. Delhi        182

5. Kolkata    186

6. Mumbai   200

The point to point rate of inflation based on CPI-IW(General) for the month of February, 2012 is 7.57% as compared to 5.32% in January, 2012. Inflation based on Food Index attained the level of 5.08% in February, 2012 as compared to 0.49% in January, 2012.

The CPI-IW for March, 2012 will be released on the last working day of the next month, i.e. 30th April, 2012

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The expected DA from January 2012 is estimated to be 65%

The expected DA from January 2012 is estimated to be 65%

As we expected the Labour Bureau, Government of India has announced the All India Consumer Price Index for Industrial workers (AICPI (IW)) for the month of December 2011.The AICPIN  now stands at 197 for the month of December 2011. In the previous month (November-2011), AICPI (IW) was 199.

Now We all know the  All India Consumer Price Index (AICPIN ) for Industrial workers for the months from January 2011 to December 2011.So now it is easy to everybody to calculate the expected Dearness Allowance from January 2012 according to the following formula.

.

Dearness Allowance = (Avg of AICPIN for the past 12 months – 115.76)*100/115.76

In the recent past, many were guessing the expected DA rate with effect from 1.1.2012, using AICPI (IW) for the months from Jan-2011 to Nov-2011,even though the AICPIN for Dec 2011 was not announced. Since, the AICPI (IW) for December 2011 is declared  last week, there is no need for any wild guess regarding the expected DA Rate for central government employees from 1.1.2012 any more.

Thus, the expected DA rate with effect from 1.1.12 is estimated to be 65%, which witnesses  an increase of 7% from the existing DA rate of 58%.

The official announcement by the Central Government for eligible DA rate for central government employees with effect from 1.1.2012 will be expected in the First week of  March-2012

source:vinmoney

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