All India Consumer Price Index for the month of May 2019 has been released by the Labour Bureau on 28th of this month and the CPI(IW) index has jumped to 314 by adding of two points, due to the pressure from Food Group index. At item level, Wheat Atta, Arhar Dal, Groundnut Oil, Poultry (Chicken), Milk Buffallo, Chillies Green, Garlic, Ginger, Onion, Banana, Brinjal, Carrot, French Bean, Green Coriander Leaves, Lemon, Potato, Tomato, Electricity Charges, Medicine­ Allopathic, etc. are responsible for the increase in index.

Out of 6 months of AICPIN needs to calculate the Dearness allowance and Dearness relief, we received 5 months statistics only. The 5th month i.e. May 2019 index is increased 2 points is remarkable. Along with the increase, the percentage of additional dearness allowance from july 2019 is kept in next level.

After 7th Pay Commission implementation, this is the highest percentage in additional allowance for Central Government employees, Civil and Defence Pensioners and Family Pensioners..

Today’s Discussion – Click to Read Hot Questions & Answers

Expected DA from July 2019: DA 4% Confirm…5% Possible! – Click for more details
5% of additional Dearness Allowance and Dearness Relief may increase from July 2019 to all central civil and defence pensioners and family pensioners with minimum amount of Rs.450 per month.

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Dearness Allowance & Dearness Relief Table

5th, 6th and 7th CPC DA TABLE : Dearness Allowance & Dearness Relief Table for Central Government Employees and Pensioners
Orders issued separate for 5th, 6th and 7th CPC Pensioners from DoPPW. The table shows the percentage of DA and DR From 1996 for 5th CPC Pensionrs, From 2006 for 6th CPC Pensioners and From 2016 for 7th CPC Pensiners) separate columns

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The statistics of All India Consumer Price Index for the month of January 2019 has been released by the Labour Bureau today on its official website. The CPI-IW index increased by 6 points and stands at 307 (Three Hundred and Seven). Click to view the Press Release and Centre wise index table also given below for further reference…

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DA Calculation as per 7th CPC

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Calculation of DA/DR based on AICPIN only

“Calculation of Dearness Allowance and Dearness Relief for Central Government Employees and Pensioners based on the methodology prescribed by the recommendations of Central Pay Commission”

Dearness Allowance is issued twice a year and the Seventh Pay Commission has adopted the same calculation methods that were prescribed by the Sixth Pay Commission.(Click to read the recommendations of 7th CPC on Dearness Allowance)

The same series of the All-India Average Consumer Price Index Numbers for Industrial Workers (Base 2001=100) are used for the calculation of DA/DR to be continued. The 7th CPC recommendations are implemented from 1.1.2017 and no DA from 1.1.2017 to 1.7.2017. And from 1.7.2017, 2% DA calculated as per the same formula recommended by 6th CPC. And then now, same calculation with the Consumer Price Index, the figure of two percent was arrived.

Most of the Central Government employees feel that the enhancement of DA/DR is meager.

The Central Government had nothing to do with the Dearness Allowance issued to the Central Government employees in the past, which were as high as 10 percent. Similarly, the government is in no way connected with the current announcement of two percent DA/DR. (Click to view the DA Chart as per 5th, 6th and 7th CPC)

The same AICPIN (CPI IW BY2001=100) adopted for the calculation of Dearness Allowance to draw their pay in the pre-revised pay scale of 5th and 6th CPC. For 6th CPC, 4% Dearness Allowance was calculated on the basis of the same method. In other words, it will be expected to increase from 132 percent to 136.

The Dearness Allowance is calculated based on the changes in the prices of essential commodities in 75 cities and towns in India, over a period of six months. The monthly data, called the AICPIN, are released each month, by the Labour Bureau under the Ministry of Labour and Employment.

Central Government employees and Pensioners are not only getting the DA and DR, also employees working under Bank, CPSE etc,. The CPI(I-W) series are used for the calculation of DA for Bank Staff and IDA for CPSE employees. Almost the same enhancement of DA will adopt for the employees working in State Governments. Consumer Price Index will impact on the salaries and pension of more than 2 crore employees and pensioners directly.

Just watch the difference of DA amount between 6th and 7th CPC…

Click to continue reading…

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