Expected DA: DA from July, 2013, 10% hike likely to announce in September - Confederation demanding 50% merger

Expected DA: DA from July, 2013, 10% hike likely to announce in September - Confederation demanding 50% merger

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

Expected DA: Cabinet may approve 10% DA hike in September 2013

Expected DA: Cabinet may approve 10% DA hike in September 2013
Cabinet Committee likely to approve ten per cent Dearness allowance hike next month.

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/

AICPIN for June 2013, confirmed 90% DA from July 2013 and also indicates 7% minimum increase in Jan-2014

AICPIN for June 2013, confirmed 90% DA from July 2013 and also indicates 7% minimum increase in Jan-2014

All-India CPI-IW for June, 2013 rose by 3 points and pegged at 231 (two hundred and thirty eight) and expected Dearness Allowance due from July, 2013 is unchanged in respect of previous month expectation of 90% means 10% increase in present DA.  See following table:-

Increase/ Decrease Index	Month	Base Year 2001 = 100	Total of 12 Months	Twelve monthly Average	% increase over 115.76 for   DA	DA announced or will be announced
1	Nov-12	218	2490	207.50	79.25%	80%
1	Dec-12	219	2512	209.33	80.83%
2	Jan-13	221	2535	211.25	82.49%	82%
2	Feb-13	223	2559	213.25	84.22%	84%
1	Mar-13	224	2582	215.17	85.87%	85%
2	Apr-13	226	2603	216.92	87.38%	87%
2	May-13	228	2625	218.75	88.97%	88%
3	Jun-13	228	2645	220.42	90.41%	90%
	Jul-13	Expected DA from July-2013				90%

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:-

Increase/ Decrease Index	Month	Base Year 2001 = 100	Total of 12 Months	Twelve monthly Average	% increase over 115.76 for   DA	DA announced or will be announced
2	May-13	228	2625	218.75	88.97%	88%
3	Jun-13	231	2648	220.67	90.62%	90%
0	Jul-13	231	2667	222.25	91.99%	91%
0	Aug-13	231	2684	223.67	93.22%	93%
0	Sep-13	231	2700	225.00	94.37%	94%
0	Oct-13	231	2714	226.17	95.38%	95%
0	Nov-13	231	2727	227.25	96.31%	96%
0	Dec-13	231	2739	228.25	97.18%	97%
	Jan-14	Expected DA from Jan-2014				97%

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 http://karnmk.blogspot.in/

Expected DA from July 2013 : AICPIN for the month of June 2013

Expected DA from July 2013 : AICPIN for the month of June 2013

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

Rates of Dearness Allowance applicable with effective from 01 January 2013 to the Railway employees continuing to draw their pay in the pre-revised scale as per 5th CPC - Railway Board Orders

Rates of Dearness Allowance applicable with effective from 01 January 2013 to the Railway employees continuing to draw their pay in the pre-revised scale as per 5th CPC - Railway Board Orders

 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

Expected DA : 90% DA from July, 2013 may be announced in view of AICPIN, May 2013

Expected DA : 90% DA from July, 2013 may be announced in view of  AICPIN, May 2013

Expected Dearness Allowance and Dearness Relief from July 2013 : Central Government employees and Pensioners will get one more installment of additional DA and DR from July 2013 will be 10%, as per the release of AICPIN for the month of May 2013. Though the requirement of one more month of AICPIN for June to finalise the enhancement of Dearness allowance, there is possible to get 90% Dearness allowance and Dearness Relief from July 2013. The calculation table describes the steps as under...

Month / Year	B.Y. 2001=100	Total of   12 Months	12 Months   Average	% Increase   over 115.763	App. DA	DA %
Dec-12	219	2512	209.33	93.57	80.83	80
Jan-13	221	2535	211.25	95.49	82.49	82
Feb-13	223	2559	213.25	97.49	84.22	84
Mar-13	224	2582	215.17	99.41	85.87	85
Apr-13	226	2603	216.92	101.16	87.38	87
May-13	228	2625	218.75	102.99	88.97	88
Jun-13	Expected					90

Labour Bureau released the statistics number of Consumer Price Index for Industrial Workers (CPI-IW) for the month of May 2013 on its official portal , which is important factor to calculate additional DA and DR to CG employees and CG Pensioners and the same is reproduced here for your information...

Consumer Price Index for Industrial Workers (CPI-IW)-May, 2013

The All-India CPI-IW for May, 2013 rose by 2 points and pegged at 228 (two hundred and twenty eight). On 1-month percentage change, it increased by 0.88 per cent between April and May compared with 0.49 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 1.22 per cent, contributing 1.64 percentage points to the total change. At item level, Rice, Arhar Dal, Fish Fresh, Poultry (Chicken), Milk, Chillies Green, Garlic, Ginger, Tomato, Root & Green Vegetables, Tea Leaf, Tea (Readymade), Cigarette, Country Liquor, Electricity Charges, Medicine (Allopathic), Repair Charges, etc. are responsible for the rise in index. However, this was compensated by Petrol putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 10.68 per cent for May, 2013 as compared to 10.24 per cent for the previous month and 10.16 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 13.24 per cent against 12.39 per cent of the previous month and 10.61 per cent during the corresponding month of the previous year.

At centre level, Chennai and Nagpur recorded the largest increase of 8 points each followed by Nasik (7 points) and Warrangal, Coonoor, Hubli Dharwar, Madurai and Tripura (6 points each). Among others, 5 points rise was registered in 2 centres, 4 points in 14 centres, 3 points in 6 centres, 2 points in 12 centres, and 1 point in 12 centres. On the contrary, a decline of 6 points was reported in Delhi, 5 points in Ghaziabad, 4 points in Srinagar, 3 points in 2 centres, 2 points in 2 centres and 1 point in 7 centres. Rest of the 10 centres’ indices remained stationary.

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

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

Expected DA (Dearness Allowance) from July 2013 to CENTRAL GOVERNMENT EMPLOYEES

Expected DA (Dearness Allowance) from July 2013 to CENTRAL GOVERNMENT EMPLOYEES

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.

Now everyone eyes at the expected dearness allowance from July 2013. It is now 80 percent of AICPI Numbers from which the rate of DA has to be arrived has been released. The AICIN for Industrial Workers for two more months are yet to be released to confirm the exact rate of Dearness Allowance going to be approved by the central government. The average of AICPIN for IW from the month of July 2012 to June 2013 will determine the rate of dearness allowance to be paid from July 2013. So look at the Consumer price Index numbers from June 2012 given below:

Month	Jul 2012	Aug 2012	Sep 2012	Oct 2012	Nov 2012	Dec 2012	Jan 2013	Feb 2013	Mar 2013	Apr 2013	May 2013	Jun 2013
AICPIN	212	214	215	217	218	219	221	223	224	226	-	-

The formula for calculating dearness allowance is:

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

To find out the average CPI for 12 months we need remaining two months CPI numbers. Let us assume that if the remaining two months AICPI numbers stands at 226 levels, the average AICPI for 12 months is 220.0833.

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

From this it is now very much clear that, even though if there is no change in the position of AICPI numbers for remaining two months, if it happened to continue in the same level of 226 points for remaining two months, the increase in the rate of dearness allowance will be 10% for the next six months starts from July 2013. According to this, the expected dearness allowance from July 2013 for central government employees will not be less than 90% level. So it is expected that the dearness allowance will be increased from existing 80% to 90% level from July 2013. With this 10% increase in dearness allowance, the annual increment for the year 2013 also will be granted for all the central government employees from July 2013.

Source : www.gservants.com

[http://www.gservants.com/2013/06/02/expected-da-dearness-allowance-from-july-2013-to-central-government-employees/]

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

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

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.

Expected DA from July 2013 - AICPIN for the month of March

Expected DA from July 2013 - AICPIN for the month of March

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

Dearness Allowance from January 2013 - 6th CPC Recommendations on merger of 50% Dearness Allowance (DA)

Dearness Allowance from January 2013 - 6th CPC Recommendations on merger of 50% Dearness Allowance.

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

 

Dearness Allowance from January 2013 - 6CPC Recommendation

 

As of now nobody knows the correct reason why the government is delaying the approval of DA hike from January 2013. Actually the delay in announcing the dearness allowance helps the people speculate more about the Governments Plan about whether the 50% DA will be merged or not. 

 

As per the 6CPC recommendation accepted by the government, the Dearness Allowance supposed to be enhanced from 1st January of every year has to be paid with salary of month of March. The 6 CPC was very much clear about two things; first one is the formula for calculating the quantum of DA to be paid to central government employees and its frequency. Second one is on Merger of 50% Dearness allowance with Basic pay by converting it as dearness Pay

 

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

 

It has been clearly told in 6 CPC recommendations under the Heading of Dearness Allowance, Chapter no 4.1

 

4.1.18 . This conversion, however, is not necessary in the revised structure being recommended where increments are payable as a percentage of the pay in the pay band and grade pay thereon and provision has been made for all allowances/benefits to be revised periodically linked to the increase in the price index. The Commission is, therefore, not recommending merger of dearness allowance with basic pay at any stage.

 

4.1.19.  No real justification exists for revising DA once in 3 months. Accordingly, DA may continue to be sanctioned twice a year as on 1st January and 1st July payable with the salary of March and September respectively for administrative convenience with inflation neutralization being maintained at 100% at all levels.

 

As it was the recommendation of 6CPC , even after the seventh day of the month of April, the quantum of DA to be increased is yet to be declared by the government is quite new for central government employees. But it is evident that ‘announcement of DA hike can be delayed, but Payment of increased Dearness Allowance cannot be denied’.

 

Source: www.gservants.com

Expected DA from July 2013 : AICPIN for the month of February 2013

Expected DA from July 2013 : AICPIN for the month of February 2013

 

The Labour Bureau has published the latest analysis of the All India Consumer Price Index (CPI-IW) for the month of February 2013. According to the fresh index data, the price index points raised to 223 from the existing level of 221. The next index of CPI-IW for the month of March, 2013 will be released on Tuesday, 30 April, 2013.

 

The press release said that the largest upward contribution to the change in current index came from Food group which increased by 1.28 per cent, contributing 1.40 percentage points to the total change. This was followed by Miscellaneous and Fuel & Light groups with 0.62 and 0.80 per cent increase respectively contributing 0.27 and 0.11 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Fish Fresh, Goat Meat, Poultry (Chicken), Milk, Onion, Tea (Readymade), Electricity Charges, Rail Fare, Petrol, etc. However, this was compensated by Root Vegetables and Sugar, putting downward pressure on the index. 

 

The year-on-year inflation measured by monthly CPI-IW stood at 12.06 per cent for February, 2013 as compared to 11.62 per cent for the previous month and 7.57 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 14.98 per cent against 14.08 per cent of the previous month and 5.08 per cent during the corresponding month of the previous year. 

 

At centre level, Belgaum and Munger-Jamalpur centres recorded the largest increase of 7 points each followed by Vijaywada, Tiruchirapally and Jharia (6 points each). Among others, 5 points rise was registered in 5 centres, 4 points in 6 centre, 3 points in 9 centres, 2 points in 14 centres and 1 point in 15 centres. On the contrary, 4 points decline was reported in Coimbatore, followed by Tirpura and Guwahati (3 points each) and 1 point in 7 centres. Rest of the 14 centres’ indices remained stationary. 

 

The indices of 41 centres are above All-India Index and other 36 centres’ indices are below national average. The index of Haldia centre was at par with all-India index.