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Posts Tagged ‘7th CPC DA Calculation’

Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage 7th CPC DA Calculation

Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage – Regarding

“The next instalment of DA, which has become due as on 1.07.2016 if computed on the above basis of 260.46, shall work out to 3.28%. On ignoring the faction, the DA with effect from 01.07.2016 shall be 3%. We, request you to kindly take the above into account and issue orders for grant of 3% DA w.e.f. 01.07.2016.”

Shiva Gopal Mishra
Secretary

Ph:23382286
National council (Staff Side)
Joint Consulative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi-110001
E-Mail : nc.jcm.np@gmail.com

No.NC/JCM/2016

Dated: September 6, 2016

The Secretary(Expenditure),
Ministry of Finance,
(Government of India),
North Block, New Delhi-110 001

Dear Sir,

Sub: Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage – Regarding

The revised pay structure, as recommended by the 7th CPC, was given effect as on 01.01.2016 as per the Government’s Notification. The Dearness Allowance, which was computed at 125% ( i.e 125.75 fraction of 0.75 being ignored), got merged with Pay as on that date. The 7th CPC has not indicated as to what base figure of AICPI(IW) the Revised Wages will relate to hereafter wards. As you are aware, the actual DA that was due as on 01.01.2016 was 125.75. It is only due to the practice of ignoring fraction; the DA was determined at 125%. No doubt, the said practice had not been impacting very much except for the postponement of the benefit by six months. It is, therefore, necessary that, Revised Wages are related to a base index figure equivalent to actual Dearness Allowance percentage of 125 that stands merged as on 01.01.2016. This is more so due to the fact that there is no possibility of the ignored fraction of 0.75 being reckoned for any computation in future.

We, therefore, request that, 12 monthly average, which stood at 261.33 as on 31.12.2015, may be taken at 260.46, which would provide the exact percentage of DA at 125. The future percentage increase in DA in other words may be computed with the base figure of 260.46. The next installment of DA, which has become due as on 1.07.2016 if computed on the above basis of 260.46, shall work out to 3.28%. On ignoring the faction, the DA with effect from 01.07.2016 shall be 3%. We, request you to kindly take the above into account and issue orders for grant of 3% DA w.e.f. 01.07.2016.

Comradely yours,
sd/-
(Shiva Gopal Mishra)
Secretary (staff side)
NC/JCM & Convener

Source: www.ncjcmstaffside.com

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Be the first to comment - What do you think?  Posted by admin - September 7, 2016 at 7:54 am

Categories: Dearness Allowance   Tags: , , , ,

7th CPC DA calculation should give same benefit of Sixth CPC

7th CPC DA calculation should give same benefit of Sixth CPC

An interesting point is raised by Mr. Alpesh on 7th CPC DA calculation as it is not giving the DA benefit we supposed to get from sixth CPC

A Comparison of current DA vs 7th Pay Commission DA

As per this current DA calculator

6th pay DA would be 7% and

7th pay DA is 2% from July onwards.

Now if we see this figures logically there is great disappointment. We actually can’t get 7th pay DA hike at least same as currently available system of 6th pay DA hike.

7th pay commission has raised basic pay with Multiplication factor 2.57.

Then logically DA revision pattern would also be such as which at least should maintain equivalency of 2.57 factor.

For example…

If one’s Basic pay in 6th CPC is Rs. 20000, So with fitment factor of 2.57 his Basic Pay in 7th pay will be 51400.

So as per DA calculator, 7% DA rise on 6th CPC Basic Pay will be Rs.1400.

2% DA rise on 7th CPC Basic Pay will be 1028.

So current applicable DA system is clearly failing to maintain the parity between 6th pay and 7th pay consideration.

In order to achieve this balance either DA Calculation system or 7th pay fitment factor should be amended.

Suppose if we think fitment factor should be amended to maintain the parity in DA Rates between Sixth and 7th CPC, then the should be such basic to be fixed so as give its 2% value as Rs. 1400.

Thus, the 7th CPC Basic Pay to be revised as Rs. 70000 instead of Rs. 51400.

And to arrive 70000 as basic Pay, the fitment factor should be revised to 3.5…!!!

If this issue is not considered timely then employee will suffer for upcoming 10 years.

Source : http://www.gservants.com/

Be the first to comment - What do you think?  Posted by admin - August 1, 2016 at 12:45 pm

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AICPIN for June 2016 – Calculation of DA from July 2016 is completed

No.5/1/2016- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

‘CLEREMONT’, SHIMLA-171004
DATED: 29th July, 2016

Press Release

 

Consumer Price Index for Industrial Workers (CPI-IW) – June, 2016

 

The All-India CPI-IW for June, 2016 increased by 2 points and pegged at 277 (two hundred and seventy seven). On 1-month percentage change, it increased by (+) 0.73 per cent between May, 2016 and June, 2016 when compared with the increase of (+) 1.16 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 (+) 2.51 percentage points to the total change. At item level, Rice, Wheat, Besan, Black Gram, Gram Dal, Groundnut Oil, Eggs (Hen), Goat meat, Poultry (Chicken), Milk, Garlic, Onion, Tomato, Potato Brinjal, Cabbage, other seasonal Vegetables, Tea Leaf, Doctors’ Fee, Petrol, Repair Charges, etc. are responsible for the increase in index. However, this increase was checked by Arhar Dal, Fish Fresh, Coconut, Mango (Ripe), Electricity Charges, putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 6.13 per cent for June, 2016 as compared to 6.59 per cent for the previous month and 6.10 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 8.33 per cent against 8.48 per cent of the previous month and 6.67 per cent during the corresponding month of the previous year.

At centre level, Mercara reported the maximum increase of 13 points followed by Vadodara (12 points), Darjeeling and Ahmedabad (10 points each), Bhavnagar (9 points) and Nagpur (8 points). Among others, 7 points increase was observed in 2 centres, 6 points in 5 centres, 5 points in 5 centres, 4 points in 5 centres, 3 points in 12 centres, 2 points in 15 centres and I point in 14 centres. On the contrary, Quilon recorded a maximum decrease of 6 points followed by Chennai (4 points), Salem (3 points) and Coonoor (2 points). Among others, 1 point decrease was observed in 3 centres. Rest of the 7 centres’ indices remained stationary.

The indices of 34 centres are above All-India Index and other 44 centres’ indices are below national average.

The next issue of CPI-IW for the month of July, 2016 will be released on Wednesday, 31st August, 2016. The same will also be available on the office website www.labourbureaunew.gov.in.

(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL

Be the first to comment - What do you think?  Posted by admin - July 30, 2016 at 8:50 am

Categories: Expected DA   Tags: , , , , ,

What are the 7th CPC’s Recommendations Regarding Dearness Allowance? 7th CPC DA Calculation

What are the 7th CPC’s Recommendations Regarding Dearness Allowance? 7th CPC DA Calculation

Dearness Allowance is one of the important issues that the Pay Commission deals with.

The calculation method that was recommended by the 6th Pay Commission was radically different from the ones suggested by all the previous Pay Commissions.

Dearness Allowance, which was increasing by 1 or 2% until the 5th Pay Commission suddenly shot up to double-digit numbers. Until the 5th CPC, the All India Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. From the 6th Pay Commission onwards, CPI (IW) 2001 = 100 was used for calculating the DA.

There was another crucial change that the 6th CPC made. it recommended that the Reference Base Index be changed from 306.33. As a result, 115.76 became the new Reference Base Index from 01.01.2006 onwards.

The report says…

The Commission assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay.

The Dearness Allowance (DA) is paid to Central Government employees to adjust the cost of living and to protect their Basic Pay from erosion in the real value on account of inflation. Presently, DA is based on the All India Consumer Price Index (Industrial Workers).

The JCM-Staff Side has suggested that the existing formula for the calculation of DA may continue.

 

Analysis and Recommendations

 
The VI CPC had recommended that the National Statistical Commission may be asked to explore the possibility of a specific survey covering government employees exclusively, so as to construct a consumption basked representative of government employees and formulate a separate index. This has, however, not been done.

Keeping in mind that the present formulation of DA has worked well over the years, and there are no demands for its alteration, the Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance.

The prices of all items have been sourced from Labor Bureau, Shimla. These prices are used in the calculation of the CPI (IW) and subsequently the calculation of Dearness Allowance. In the current exercise the prices of all items are for the period July 2014-June 2015 and have been used in the calculation of DA at 119 percent operative from 01.07.2015.

Be the first to comment - What do you think?  Posted by admin - February 29, 2016 at 10:18 am

Categories: 7CPC, Dearness Allowance, Expected DA   Tags: , , , , ,

7th Pay Commission DA Calculation – Jan 2016 AICPIN starts with new episode of ‘Expected DA July 2016

7th Pay Commission DA Calculation – Jan 2016 AICPIN starts with new episode of ‘Expected DA July 2016’

“The first AICPIN points of 2016 will be released tomorrow”

The Dearness Allowance given to Central Government employees and Pensioners will henceforth be calculated on the basis of the 7th Pay Commission recommendations
from 1.1.2016.(Expects its recommendations to be implemented by the Government)

The first All India Consumer Price Index – CPI (IW) Base Year 2001=100, used for calculating the Dearness Allowance will be announced tomorrow by the Central Government.

The current DA, according to the 6th Pay Commission, began at zero on 01.01.2006, and ended at 125%. It will restart again at zero from 01.01.2016 onwards.
There is no Dearness Allowance for the six months from January to June 2016. 
From July 2016 onwards, the new and first Dearness Allowance will be announced based on the recommendations of the 7th Pay Commission. In other words, the Dearness Allowance for the six months between July and December 2016 will be based on the fluctuations in the prices of essential commodities, called the AICPIN points, between January and June 2016.
The 7th Pay Commission has not prescribed any dramatic changes in the method of calculation of the Dearness Allowance. Instead, the previous method is all set to continue.
But, final announcements will be made in this regard only after the Central Government makes its decisions clear.

6TH CPC DA TABLE

7CPC-EXPECTED-DA-FROM-JULY-2016-AS-PER-7TH-PAY-COMMISSION
 

Be the first to comment - What do you think?  Posted by admin - February 28, 2016 at 9:00 pm

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Expected Date for Submission of 7th Pay Commission Report and its important recommendations- Sources

Expected Date for Submission of 7th Pay Commission Report and its important recommendations- Sources

As the 7th pay Commission itself declared that the work of compilation and finalization of the report is underway, it is the time for expecting the date on which the report will be submitted after it is finalized. The stipulated time for submitting the report is 18 months from the date of notification issued. In a resolution dated 28th February, 2014, Government of India has appointed the Seventh Central Pay Commission comprising Justice Shri Ashok Kumar Mathur as Chairman, Shri Vivek Rae as full time Member, Dr. Ratin Roy as part time Member and Smt. Meena Agarwal as Secretary

The 7th pay commission has been given 18 months’ time from date of its constitution to make its recommendation. Hence the tentative date for submission of Report will be 30th August 2015.

The sources close to the 7th Pay Commission, on the condition of anonymity told that the 7th pay Commission Report is almost finalized and the Report is expected to be submitted on or before 14th August 2015. The Leaders representing one of the railway federations in the staff side also confirmed this news.

 According to the Sources the important Points of the Pay Commission’s Recommendations are ..

1. There will be no running Pay band and Grade Pay System

2. The uniform multiplication factor for arriving revised pay will be 2.86

3. The Pay scales will be open ended to avoid stagnation in the scales

4. The Minimum Pay will be Rs. 21000

5. The CCA will be separated into two components as it was in the fifth CPC

6. Percentage of HRA will remain same.

7. The Criteria for retirement age will be either completion of 33 Years of service or at the age of      60  Years whichever is earlier.

8. CGEGIS  Insurance Coverage and Monthly premium  will be increased

9. Classification of Posts will be Modified

10. The 7th Pay Commission recommendation will be implemented with effects from 1.1.2016.

   Further ,the sources told that the Committee of Secretaries will be appointed to study the report and analyze the financial implications upon implementation of 7th pay commission recommendation.  An ally of NCJCM Staff Side told that the Staff Side also will be invited by the third week of September 2015 by this Committee before giving its final nod for approval for this Recommendation.

          It appears that after  three decades the Pay Commission recommendations will come into force on the first day of its due date. Retrospective effect will not be required for implementation of 7th Pay Commission recommendation, since the notification for implementation of 7th Pay Commission recommendations might be issued on or before 1.1.2016.  So there will be no financial burden for government on spending for payment of Arrears to this effect.

        It is indeed very good news for entire central and some State government employees community. There are expectations on its peak over 7th pay commission recommendation. Whether the 7th Pay Commission’s recommendation fulfill their expectations or not?.  Let’s hope, by the time of next month, everything that is concealed will be brought to light and made known to all.

Source: Gservants

Be the first to comment - What do you think?  Posted by admin - July 16, 2015 at 4:25 pm

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7th CPC DA Calculation – Important factor of AICPI (IW) BY 2001 continue or not..?

7th CPC DA Calculation – Important factor of AICPI (IW) BY 2001 continue or not..?

 

Dearness Allowance is one of the important issues that the Pay Commission deals with. The calculation method that was recommended by the 6th Pay Commission was radically different from the ones suggested by all the previous Pay Commissions. Dearness Allowance, which was increasing by 1 or 2% until the 5th Pay Commission suddenly shot up to the peak of double-digit numbers.

 

Until the 5th CPC, the Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. From the 6th Pay Commission onwards, CPI (IW) 2001=100 was used for calculating the DA.

 

There was another crucial change that the 6th CPC made. It recommended that the Reference Base Index be changed from 306.33. As a result, 115.76 became the new Reference Base Index from 01.01.2006 onwards.

 

Will the 7th CPC introduce a new CPI (IW)? Or will it bring about changes in the Reference Base Index?

 

This is something that everybody wants to know.

 

Just watch the difference between 5th and 6th CPC DA Calculation methods…

 

 

5th CPC calculation method is given below…

 

The extant formula for calculation of DA till 1-1-2004 was:

 

12 Monthly Average – 306.33
——————————————————–  x 100 = percentage increase in prices
306.33

 

The Fifth Pay Commission had recommended that DA should be converted into DP each time the CPI increased by 50% over the base index. The Government merged 50% of DA with the
basic pay w.e.f. 1-4-2004. The formula for calculation of DA for the period from 1-7-2004 is:

 

12 Monthly Average – 306.33
{  ————————————————  x 100} – 50 = percentage increase in prices
306.33

 

6th CPC calculation method is given below…

 

(12 Monthly Average) – 115.76
——————————————————–      x 100 = percentage increase in prices
115.76

 

Source: http://7thpaycommissionnews.in/

Be the first to comment - What do you think?  Posted by admin - November 17, 2014 at 5:02 pm

Categories: 6CPC, 7CPC, AICPIN, Dearness Allowance, Employees News, Latest News   Tags: , , , , , , , ,