Until the 6th CPC, the Dearness Allowance didn’t increase by more than 1 or 2%. It was only after the 6th Pay Commission that it began to increase substantially. With the skyrocketing prices of essential commodities, Dearness Allowance too began to rise. Twice, it touched double digits. In July 2013 and Jan 2014, within 12 months the DA has leapt on to the 100%. We cannot forget that the each instalment gave 10%. Then, it slumped.

Dearness Allowance, which is given once every six months, is likely to be 6% hike from January 2015. This is 1% less than the previous hike of additional DA from July 2014.

As soon as the first instalment is confirmed, expectations will start growing about the second instalment, i.e., ‘Expected Da from July 2015‘. The second instalment of the year will cover the months between July and December 2015. This will be the last time that the DA hike will be calculated based on the method recommended by the 6th Pay Commission. DA of 2016 will be calculated based on the recommendations made by the 7th Pay Commission.

7th Pay Commission on DA Calculation..? Is there any possible to change in the method of calculation..?

First, we have to know about the calculation of Dearness Allowance…
How DA is calculated..?
Month Year /  CPI(IW) BY 2001=100 / Total / Average / App. DA / DA%
First is the month and year. Then the CPI (IW) Base Year 2001=100 and the relevant data. In the next column, you have the sum total of all the 12 months, i.e., the total of the declared AIPCIN numbers for the past 12 months. Next comes the division of the sum total by 12.

The next step is the most crucial one. You will have to find out by how much it exceeds 115.76. You will have to calculate the excess as percentage of 115.76.

(12 Monthly Average) – 115.76
————————————  X  100 = Percentage increase in prices (ignore decimals)
115.76

Click here to continue reading the article…

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The most anticipated news about the change in All India Consumer Price Index, which is connected to the calculation of Dearness allowance for CG employees and Pensioners, just released by labour Bureau today.

The index is still standing in the same position of 253 past four months. So the expected da from january 2015 is almost confirmed to hike by 6% only.

And the next AICPIN for the month of December 2014 will be issued by the Labour Bureau on 30th January 2015.

Labour Bureau issued official report of CPI for November 2014 as follows…

Consumer Price Index for Industrial Workers (CPI-IW) – November, 2014

No. 5/1/2014- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT

LABOUR BUREAU
`CLEREMONT’, SHIMLA-171004
DATED: the 31st December, 2014

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) – November, 2014

The All-India CPI-IW for November, 2014 remained stationary at 253 (two hundred and fifty three). On 1-month percentage change, it remained static between October, 2014 and November, 2014 when compared with the rise of 0.83 per cent between the same two months a year ago.

The largest upward pressure to the change in current index came from Miscellaneous group contributing (+) 0.17 percentage points to the total change. At item level, Wheat, Rice, Moong Dal, Masur Dal, Arhar Dal, Eggs (Hen), Goat Meat, Milk (Cow), Onion, Tea (Readymade), Private Tution Fee, Flower/Flower Garlands, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was restricted to some extent by Ginger, Chillies green, Vegetable items, Sugar, Petrol, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 4.12 per cent for November, 2014 as compared to 4.98 per cent for the previous month and 11.47 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 2.56 per cent against 4.48 per cent of the previous month and 16.17 per cent during the corresponding month of the previous year.

At centre level, Madurai reported an increase of 12 points followed by Chennai (11 points), Tiruchirapally (7 points), Coonoor (6 points), Salem and Coimbatore (5 points each) and Bangluru (4 points). Among others, 3 points rise was observed in 3 centres, 2 points in 7 centres and 1 point in 9 centres. On the contrary, Srinagar recorded a decrease of 6 points and Ghaziabad (5 points). Among others, 4 points fall was registered in 2 centres, 3 points in 6 centres, 2 points in 12 centres and 1 point in 19 centres. Rest of the 11 centres’ indices remained stationary.

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

The next index of CPI-IW for the month of December, 2014 will be released on Friday, 30 January, 2015. The same will also be available on the office website www.labourbureau.gov.in.

(S. S. NEGI)
DIRECTOR

Source: Labour Bureau

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It looks as if there is scarcely any curiosity among Central Government employees to know about the next DA hike percentage. With just about everybody trying to predict the percentage hike, the topic has lost its novelty. Moreover, with DA increase not amounting to anything much, the curiosity to know has also nosedived.

Consumer Price Indices (CPI) measure changes over time in general level of prices of goods and services that households acquire for the purpose of consumption. CPI is widely used as a macroeconomic indicator of inflation, as a tool by governments and central banks for inflation targeting and for monitoring price stability, and as deflators in the national accounts. CPI is also used for indexing dearness allowance to employees for increase in prices.

There is huge change in CPI (General) and CFPI, have a look the comparison table is given below…

Click to continue reading…

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We are talking about an important index for the calculation of Dearness Allowance for Central Government Employees and Pensioners. The index, All Indian Average Consumer Price Index (Industrial Workers) Base Year 2001=100 is calculated and released by labour Bureau every month.

Last date of the every month, the detail of statistics has been published by the Labour Bureau. According to this, month of November 2014 index numbers will be released on 31st Dec 2014.

The index stands now at 253, there is no expectation to climb up. Because not at all change the index of 253 for three months. In coming months, the index may be continue in the down trend, i.e., 252, 251.

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AICPIN for the month of August 2014 – 1 Points increased and stands at 253

No. 5/1/2014- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

‘CLEREMONT’, SHIMLA-171004
DATED: the 30th September, 2014

Press Release

Consumer Price Index for Industrial Workers (CP-IW) – August, 2014

The All-India CPI (IW) for August, 2014 increased by 1 point and pegged at 253 (two hundred and fifty three). On 1-month percentage change, it increased by 0.40 per cent between July, 2014 and August, 2014 when compared with the rise of 0.85 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 1.03 percentage points to the total change. At item level, Wheat, Pulses, Milk, Chillies-green, Potato, Tomato, Green vegetables & fruits, Tea (Readymade), Snack Saltish, Bidi, Chewing tobacco, Pan finished, Fire wood, Doctor’s fee, Cable charges, Auto rickshaw & Bus Fare, Flower/Flower garlands, Toiletries, Tailoring charges, etc. are responsible for the increase in index. However, this increase was restricted to some extent by Eggs (Hen), Fish Fresh, Poultry (Chicken), Ginger, Sugar, Electricity Charges, Medicine (Allopathic), Petrol, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI~lW stood at 6.75 per cent for August, 2014 as compared to 7.23 per cent for the previous month and 10.75 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 7.63 per cent against 8.11 per cent of the previous month and 13.91 per cent during the corresponding month of the previous year.

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At centre level, Nasik and Vadodara recorded the maximum increase of 8 points each followed by Chhindwara (7 points) and Surat (6 points). Among others, 5 points rise was observed in 4 centres, 4 points in 5 centres, 3 points in 7 centres, 2 points in 15 centres and 1 point in 16 centres. On the contrary, Goa reported a decrease of 8 points followed by Mysore (4 points). Among others, 3 points fall was observed in 3 centres, 2 points in 5 centres and 1 point in 6 centres. Rest of the 11 centres’ indices remained stationary.

The indices of 39 centres are above and other 39 centres are below national average.

The next index of CPI-IW for the month of September, 2014 will be released on Friday, 31 October, 2014. The same will also be available on the office website www. iabourbureau. gov. in.

sd/-
(S.S. NEGI)
DIRECTOR

Source: www.labourbureau.nic.in
[http://labourbureau.nic.in/press_note_eng_Aug_2014.pdf]Similar Posts:

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