Wednesday, August 31, 2016

AICPIN for the month of July 2016: 2% DA for the month of July 2016

AICPIN for the month of July 2016

No. 5/1/2016-CPI
DATED: 31st August, 2016
Press Release

Consumer Price Index for Industrial Workers (CPI-IW) — July, 2016

The All-India CPI-IW for July, 2016 increased by 3 points and pegged at 280 (two hundred and eighty). On 1-month percentage change, it increased by (+) 1.08 per cent between June, 2016 and July, 2016 when compared with the increase of (+) 0.77 per cent between the same two months a year ago.

The maximum upward pressure to the change in current index came from Food group contributing (+) 1.65 percentage points to the total change. The House Rent index further accentuated the overall index by (+) 0.86 percentage points. At item level, Rice, Wheat, Wheat Atta, Besan, Black Gram, Gram Dal, Groundnut Oil, Eggs (Hen), Poultry (Chicken), Milk, Chillies Green, Garlic, Onion, Brinjal, Cabbage, Cauliflower, Gourd, Palak, Potato, Pumpkin, Banana, Sugar, etc. are responsible for the increase in index. However, this increase was checked by Fish Fresh, French Beans, Tomato, Electricity Charges, Petrol, etc. putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.46 per cent for July, 2016 as compared to 6.13 per cent for the previous month and 4.37 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 9.34 per cent against 8.33 per cent of the previous month and 3.21 per cent during the corresponding month of the previous year.

At centre level, Bokaro reported the maximum increase of 11 points followed by Munger-Jamalpur (10 points), Giridih, Agra and Delhi (9 points each). Among others, 7 points increase was observed in 4 centres, 6 points in 10 centres, 5 points in 5 centres, 4 points in 9 centres, 3 points in 8 centres, 2 points in 8 centres and 1 point in 5 centres. On the contrary, Mysore recorded a maximum decrease of 6 points followed by Mundakkayam and Coimbatore (5 points each), and Hubli Dharwar and Emakulam (4 points each). Among others, 3 points decrease was observed in 4 centres, 2 points in 2 centres and 1 point in 5 centres. Rest of the 8 centres’ indices remained stationary.

The indices of 33 centres are above All-India Index and other 43 centres’ indices are below national average. The indices of Vishakhapathnam and Mundakkayam centres remained at par with All-India Index.
The next issue of CPI-IW for the month of August, 2016 will be released on Friday, 30th September, 2016. The same will also be available on the office website



DA is the most important allowance in existing Pay, if you look at the current basic DA is higher.

7th CPC Basic fixation has biggest influenced with the DA value. For this reason, after 7th Pay commission implementation, Central government staffs are looking out for how DA would be available.

In 6th CPC, everyone know how DA was calculated

In the above formula 115.76 was fixed based on the below interpretation

After implementation of Sixth Pay Commission report, Government ordered that the dearness allowance has to be calculated based on All India Consumer Price Index for Industrial Workers (CPI¬IW index) with the base year 2001-100. So, DA with effect from the period 1.1.2006, has to be calculated using average Price CPI-IW index of 536 for 2005 (base 1982-100) adjusted to the base year 2001-100 by dividing the same with the Linking Factor between 1982 and 2001 Series which is 4.63. As a result, the average consumer price index (Industrial workers) for 12 months in 2005 (base 2001-100) was worked out to 115.76.To calculate Dearness Allowance with effect from Jan-06, we need the average of monthly All India Consumer Price Index (IW) with the base year

2001-100 for the preceding 12 months and apply the same in the following formula:

DA – (Average AICPI-115.76)x 100/115.76

For example, to calculate the DA for 01/01/2007, we find that the average AICPI in the year 2007 -118.95. So, D.A. as on 01/01/2007 – (118.95 – 115.76)*100 /115.76 = 2%.

In 7th CPC entire calculation can change if we use the same combination. Let’s see, how this can change?
Based on it, in 2015 (base 2001 =100) Average is 261.40 and by using the same following formula the expected (assumed) DA in 7th CPC would be (261.4-261.4)*100/261.4 = 0% and July (277-261.4)*100/261.4 = 2%

In case the base year 2011-100 is used in 7th CPC, then the linking factor will be changed to calculate the DA Value.

Minimum wage hike for unskilled labourers historic : Arun Jaitley

Minimum wage hike for unskilled labourers historic : Arun Jaitley

NEW DELHI: Finance Minister Arun Jaitley today said the “historic hike” in minimum wages to Rs 350/day is a step forward in transforming India and labour reforms.

To appease trade unions, the government yesterday announced a 42 per cent increase in the minimum wages for unskilled non-agricultural workers to Rs 350 per day from the current Rs 246.

Also, the government employees will be paid a wage bonus as per revised norms, for 2014-15 and 2015-16, a move that will entail a payout of Rs 1,920 crore.

“Historic hike in minimum wages for unskilled non-agricultural workers to Rs 350/day is a step forward in Transforming India and labour reforms,” Jaitley tweeted.

The decision to pay bonus for years 2014-15 and 2015-16 on revised norms reiterates government’s “commitment to work for the benefit of workers”.

Trade unions, which are demanding minimum monthly wage of Rs 18,000 per month or Rs 692 a day and base pension of Rs 3,000 a month have said however that they would go ahead with the day-long strike on September 2.

The strike call is being supported by almost all major labour unions except RSS-affiliated BMS, and may impact banking and insurance services, power supplies and coal mining.


Hike in salaries of MPs under government consideration: Par panel

Hike in salaries of MPs under government consideration: Par panel

New Delhi: The issue of hike in salaries of MPs is under consideration of the government, a Parliamentary panel was informed today.

Deposing before the Joint Committee on Salaries and Allowances of Members of Parliament, representatives of the Parliamentary Affairs Ministry Committee said the issue of hike in salaries of MPs is under the consideration of the government, sources said.

The ministry, sources said, is working on the final draft before it is sent to the Prime Minister’s Office for approval.

At today’s meeting, some members lamented that while the recommendations of the 7th Pay Commission have been implemented, the lawmakers are yet to get a salary hike.

The Centre had in September last proposed to constitute a three-member Emoluments Commission to determine salary and allowances of Members of Parliament and it was endorsed at the two-day All India Whips Conference on September 29 and 30.

An MP gets a salary of Rs 50,000 per month. In addition, Rs 2,000 per day is paid as daily allowance when an MP signs the register while attending Parliament sessions or House committee meetings. An MP is also entitled to Rs 45,000 constituency allowance every month — Rs 15,000 for stationery and Rs 30,000 to employ secretarial assistance staff.

In their sitting on October 20 last year, the committee decided to enhance the amount of Constituency Allowance from the present Rs 45,000 to Rs 75,000, which required an amendment in rules.

MPs are also entitled for government accommodation, air travel and train travel facilities, besides three landline telephone connections and two mobile phones. They also get a loan of Rs 4 lakh to buy a vehicle.


Issues arisen consequent upon 7th CPC recommendations and Government decisions

Issues arisen consequent upon 7th CPC recommendations and Government decisions

National Federation of Indian Railwaymen
Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No. IV/NFIR/7 CPC (Imp)/2016/MoF
Dated: 31/08/2016
The General Secretaries of
Affiliated Unions of NFIR

Dear Brother,
Sub: Issues arisen consequent upon 7th CPC recommendations and Government decisions -reg.
The affiliates are aware that the Indefinite Strike action from 11/07/2016 on Charter of demands mainly “minimum wage and multiplying factor” was deferred on official commitment given by the Government through Finance Ministry’s statement on 6th July, 2016 for constituting High Level Committee to examine the issues.

A committee under the Chairmanship of Additional Secretary (Expenditure) with Joint Secretary (Pers), Joint Secretary (Estt), Joint Secretary (Imp) as its members will deal the issues raised through a memorandum of JCM (Staff Side), submitted to the Empowered Committee, among them the major issues are “upward revision of Minimum wage as well Multiplying Factor”.
The 1st introductory meeting chaired by Addl. Secretary (Exp) was held on 30th August, 2016 at North Block, New Delhi attended by myself, S/Shri Shiva Gopal Mishra & M.S. Raja. In the preamble, we tried to impress upon the Addl. Secretary (Exp) the need for revision of minimum wage and Multiplying factor formula on the basis of facts and merits already presented by JCM (Staff Side). After brief discussion, it was agreed that another meeting of the Committee will be fixed to be held in consultation with the JCM (Staff Side).

We also met Cabinet Secretary, Government of India thereafter and conveyed our disappointment over the delay in sorting out important issues. The Cabinet Secretary has stated that orders have since been issued by the Government for payment of Gratuity to the employees governed by the NPS. He said that the Government has also issued orders revising the salary calculation limit to Rs. 7000/- for payment of Bonus/PLB w.e.f. 2014. The Cabinet Secretary has also assured to positively consider remaining pending issues.

The affiliates may please note that a meeting between the Standing Committee of JCM (Staff Side) and the Committee Chaired by Finance Secretary (Expenditure) will take place on 1st September, 2016 at North Block, New Delhi. In the said meeting the issues pertaining to the negative recommendations of 7th CPC on allowances and advances will be dealt.
Yours fraternally
(Dr. M. Raghavaiah)
General Secretary
Source : NFIR



CITU Press Statement
30th August 2016

The Group of Ministers headed by the Union Finance Minister Shri Arun Jaitley, and comprising Labour Minister, Petroleum Minister and Power Minister held a Press Conference today on 30th August 2016 to tell the nation that the Govt had accepted major demands of the trade unions and hence they should not go in for strike on 2nd September 2016. CITU considers the statement of the Govt nothing but a mockery meted out to workers.

The Statement of the Finance Minister that the Govt has accepted the recommendation of the Minimum Wage Advisory Committee is totally untrue. The Minimum Wage Advisory Committee met on 30th August 2016 at 3 pm and ended inconclusive while all the workers’ representatives reiterated their demand of Rs 18000/-. Such mis-statement by Govt is a deliberate ploy to mislead and confuse the workers before the strike.

Govt’s offer of a floor level minimum wage of Rs 350/- per day, i.e., Rs 9100/- per month (26 days) is cruel joke by the Govt making a posture of accepting the demands of workers. Trade unions reject such a mockery in the name of offer with the contempt it deserves.

Releasing previous year’s bonus for the central govt employees is not something about Govt’s magnanimity. Govt did so to implement the enhanced ceiling as per the Payment of Bonus Act for them, which they should have done much earlier. Now they have released in order to deceptively pose that the Govt has been considering so many things. So far as the court cases on implementation of Payment of Bonus Act is concerned, it is the responsibility of the central govt to defend and implement the Act passed by Parliament, for which they cannot claim any special credit. But this NDA Govt should better note that it is the BJP Govt in Madhya Pradesh, Rajasthan etc have withheld implementation of the Bonus Act for the year 2014-15 on their own citing the High Court Orders in Kerala and Karnataka which were not binding on them. That makes the real intention clear.

Govt also stated that they will issue advisory to state governments to ensure registration of trade unions within 45 days. Advisory is not having binding impact. What is required is to make statutory arrangement. But in their proposals on labour reforms, Govt has already put so many conditions that would make registering trade union virtually impossible.

On being asked in the press conference about the right to minimum wages for the central Govt Scheme workers like Anganwadi, Mid-day-meal, ASHA etc , The Finance Minister brushed the questioner aside saying that scheme workers are all volunteers and not workers. He must recall that the 46th Indian Labour Conference held during NDA regime has unanimously reiterated the recommendation of the previous ILC that the Scheme workers should be recognized as workers with right to minimum wages and attendant benefits.

The Minister further stated that the scheme workers will be covered by the Social Security benefits for which a committee will be constituted. Almost same statement was uttered by him one year before on 26-27 August 2015, prior to previous general strike. Nothing has been done yet. Rather ESIC has offered extremely partial ESI benefit to Anganwadi and mid-day-meal workers on payment of Rs 250/- per month which amounts to 8.33% of the paltry earning of the anganwadi workers, 16% of the anganwadi helpers and 25% of the mid-day-meal workers; whereas the workers covered by ESIC Act are to contribute 1.75% of their wage for full ESI benefit. Such proposal is dubiously designed to deny them the social security benefit and this deceptive game is going on.

In reality, Govt’s announcement in the press conference on the charter of demands of the workers is nothing but a hoax and must be rejected outright. This is game to confuse and mislead people just on the eve of strike. Such deceptive and dubious ploy of the Govt must be combated through making the 2nd September 2016 a massive success.

Source: CITU Centre

7th Pay Commission: No revised pay yet for military personnel

7th Pay Commission: No revised pay yet for military personnel - The Hindu

The seventh Pay Commission recommendations will be reflected in this month’s salary for central government employees that would be remitted on Wednesday, but not for the military personnel.

According to military sources, their new salaries are yet to be notified as the notification implementing the Seventh Pay Commission has not yet been issued by the Defence Ministry.

This is because the three service chiefs have written to Prime Minister Narendra Modi and Defence Minister Manohar Parrikar seeking their intervention to fix the anomalies expressed by the military which remain unaddressed despite several representations to the empowered committee and assurances from Mr. Parrikar.
The key demands of the services include Non Functional Upgrade, NFU pay fixation, Military Service Pay (MSP) and common pay matrix for civil and military.

Read at: The Hindu

Government hikes minimum wage for workers as union strike nears

Government hikes minimum wage for workers as union strike nears

New Delhi: The Centre today announced a hike in minimum wage for unskilled non-farm workers of the central government to Rs 350 a day, from the current Rs 246, in an attempt to mollify trade unions that have threatened to go on a nation-wide strike on Friday.

Interacting with reporters here, Finance Minister Arun Jaitley said the bonus for 2014-15 and 2015-16 will be paid to central government employees based on revised norms. The Bonus Amendment Act will be implemented “strictly”.

He gave an assurance that the government will also take necessary steps to resolve the cases on payment of bonus pending in high courts and the Supreme Court.

The likely financial implications of the bonus move translate into Rs 1,920 crore per annum.

“In the last one and a half years, the inter- ministerial committee had meeting with central trade unions. Trade unions placed various demands. Some were labour related and some economic policy issues related. The government has taken some decisions with regard to those on the basis of their recommendations,” added Jaitley.

Power and Coal Minister Piyush Goyal and Labour and Employment Minister Bandaru Dattatreya were also present.

Jaitley said it has been decided to fix the minimum wages at Rs 350 per day for unskilled non-agricultural workers for ‘C’ category areas keeping in view the modalities of fixing minimum wages.

The decision was taken following deliberations at the meeting of the Minimum Wage Advisory Board under the chairmanship of the labour minister for revising the basic minimum wages in the central sphere.

The registration of the contract workers and their staffing agencies is mandatory and states will be advised to strictly implement the same, the finance minister said.

Errant contractors will face appropriate action for any violation, he warned.

The issue of giving social security benefit to the unorganised sector (like Anganwadi, mid-day meal, Asha volunteers) will be examined by a committee which will give its report at the “earliest”.

Asked about the strike call, Jaitley said: “I think we have responsible trade unions.”

On the opposition to the government’s plans to merge associate banks of SBI with the parent bank, Jaitley said “the merger is not subject of trade unions”.

“Their service conditions are not being hurt adversely or affected at all. There will be no impact of merger on service conditions of any employee. If government decides that we need strong banks, then unions would have to change their approach to the whole issue,” he asserted.

Dattatreya has held meetings with central trade unions wherein detailed discussions were held with regard to their charter of demands.

The issues have been taken up by inter-ministerial committee haded by the finance minister.

As many as 10 central trade unions have given a call for a one-day pan-India strike on September 2, 2016, to protest against the government’s labour reforms and “not paying heed to their demands”.


Trade unions stick to Sept 2 strike, reject government wage hike

Trade unions stick to Sept 2 strike, reject government wage hike

New Delhi: Trade unions today said they will go ahead with nation-wide strike on September 2, rejecting as “completely inadequate” the government’s 42 per cent hike in minimum wage to Rs 350 per day.

“The government’s minimum wage announcement is completely inadequate. The strike stands and we demand they should enact a Lawto fix minimum (universal) wage,” All India Trade Union Congress General Secretary Gurudas Dasgupta said.

Earlier in the day, Finance Minister Arun Jaitley announced a slew of labour-friendly measures including hiking of minimum wage to Rs 350 a day for unskilled non- agricultural workers for ‘C’ category areas in central sphere.

Calculated monthly, it comes to Rs 9,100 minimum income (for 26 days) which is way below the unions’ demand of Rs 18,000. Initially, the unions had demanded Rs 15,000 as minimum monthly income for daily wagers but the demand was revised after the government accepted the recommendations of the 7th Pay Commission.

Asked whether this will be a benchmark wage for the entire country, Labour Secretary Shankar Aggarwal said that this is for workers in central sphere and states can fix a minimum wage lower or higher than this rate.

Explaining further, Labour Minister Bandaru Dattatreya said that an amendment in the Minimum Wage Act is required for fixing a universal minimum wage and an initiative has been taken in this direction.

“Finance Minister’s statement clearly shows that the government has not considered any of the demands in our 12-point charter. The unions have no other alternative but to fight for their rights,” Indian National Trade Union Congress Vice-President Ashok Singh said.

However, RSS affiliate Bharatiya Mazdoor Sangh has lauded the government’s announcements and decided to abstain from the general strike on September 2.

“We welcome it and are satisfied by the increase in minimum wages. BMS will not participate in the strike,” BMS General Secretary Virjesh Upadhyay said.


7th Pay Commission: Change rules to reflect recommendations, Government tells departments

7th Pay Commission: Change rules to reflect recommendations, Government tells departments

The Centre has accepted most of the recommendations of the 7th Pay Commission, to be implemented from January 1, 2016.

The meeting will be taken with representatives of all the ministries in first week of October, it said
All central government departments have been asked to change service and recruitment rules to reflect recommendations of the Seventh Central Pay Commission.

They have been asked not to make reference to the Department of Personnel and Training (DoPT) and the Union Public Service Commission and modify the service rules on their own.

The Centre has accepted most of the recommendations of the 7th Pay Commission, to be implemented from January 1, 2016.

“Consequential amendment in the existing service rules and recruitment rules shall be made by the ministries or departments by substituting the existing pay band and grade pay by the new pay structure i.e. ‘Level in the Pay Matrix’ straightaway without making a reference to the Department of Personnel and Training and Union Public Service Commission,” the DoPT said in an order.

In this regard, a confirmation meeting is scheduled to be taken by the DoPT “to take stock of the latest position of amendment in service rules/recruitment rules”.

The meeting will be taken with representatives of all the ministries in first week of October, it said.
All central government departments have already been asked to set up committees to look into various pay related anomalies arising out of the implementation of the Pay Commission’s recommendations.

There will be two levels of Anomaly Committees — National and Departmental — consisting of representatives of the official side and the staff side of the national council and the departmental council, respectively.

Source : Indian Express

Brief of the meeting held today between the Government of India and the National Council JCM Staff Side

Brief of the meeting held today between the Government of India and the National Council JCM Staff Side

Shiva Gopal Mishra
National council (staff Side)
Joint Consulative Machinery for Central Government Employees
13-C, Ferozshah Road, New Delhi-110001
E-Mail :
Dated: August 30, 2016
All Constituents of National Council(JCM)
Dear Comrades!

Sub: Brief of the meeting held today between the Government of India and the National Council (JCM) (Staff Side)

The Government of India has constituted a committee, under the Chairmanship of Addl. Secretary(Exp.) with J.S.(Pers.), JS(Estt.) and JS(Imp.) as members, to deal with the pending issues of our memorandum, submitted to the Empowered Committee, of which prominent are “Minimum Wage and Multiplying Factor”.
The first meeting of the said committee with the National Council(JCM) Staff Side was held today, i.e. 30th August, 2016, which remained almost introductory. Apart from the Official Side members, Shri M. Raghaviah, Shri M.S. Raja and I myself (from the Staff Side JCM) attended the said meeting.

We raised vehemently the issues of “Minimum Wage and Multiplying Formula” and made them very clear that; the VII CPC has accepted Dr. Aykroyd Formula for fixing Minimum Wage, but has not implemented the said formula in full sense, so, that is not acceptable to the Staff Side(JCM), therefore, Minimum Wage from Rs.18000 must be enhanced and accordingly Fitment Formula should also be changed.

It was agreed by the committee that, since we are again meeting on 1st September, 2016 with the Committee on Allowances, the next meeting of the said committee will be fixed in consultation with the Staff Side(JCM).

Thereafter, we also met the Cabinet Secretary(Government of India) and there also we shown our anguish about the inordinate delay in resolving those issues which were agreed to. The Cabinet Secretary said that, orders for the gratuity have been issued for the NPS covered employees, and orders for the PLB and arrears have also been issued. Many of the issues raised by the Staff Side(JCM) have been accepted and implemented and the remaining issues would also be pursued and settled.
Comradely yours,
(Shiva Gopal Mishra)
Secretary (staff side)
NC/JCM & Convener

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