Future Computation of Dearness Allowance and Adoption base Index figure to Revised Minimum Wage – Regarding

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 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.

Comradely yours,

Sd/-

(Shiva Gopal Mishra)

Secretary (staff side)

NC/JCM & Convener

Source: www.ncjcmstaffside.com

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DA Merger would have been more Beneficial than 7th Pay Commission

DA Merger would have been more Beneficial than 7th Pay Commission

The 7th CPC submitted its report in November 2015.The Empowered Committee of Secretaries blocked it for 7 long months. Finally the cabinet approved the report without any modification, The Gazette Notification on the pay and allowances of employees was issued on 25-07-2016. The same minimum pay of Rs.18000/- The same multiplication factor of 2.57. Absolutely no change.

Let us now analyse what would have been the case, had 50% of Dearness Allowance / Dearness Relief been merged with pay / pension with effect from 01-11-2011. DA merger had taken place before implementation of 5th and 6th CPC Recommendations. Though we had demanded it this time also, it was not agreed to. Whether enough organizational pressure was there to get the demand accepted is now an academic issue for discussion only. The DA / DR was 51% in January 2011. The percentage rates of DA/DR were 58, 65, 72, 80, 90, 100 107, 113, 119 and 125 during subsequent six monthly periods up to January 2016. Now we shall workout the financial implication of the 50% DA/DR merger notionally. A person with a basic pay / pension of Rs. 10,000/- would have got Rs. 1,06,500/- as difference in DA/DR for the period 01-01-2011 to 31-12-2015. That is the notional loss. It is easy to workout. For every 1,000 rupee as pay / pension, the benefit would have been Rs. 10650/- We cannot even dream of such an amount as pay revision “bonanza”.

Multiplication factor would have increased to 3 instead of 2.57

The pay + DA of the lowest paid employee who was drawing Rs. 7,000/- (5,200 +1,800). On 01-01-2016 would have been Rs. 1,8375/- In that case, no Pay Commission would have dared to recommend Rs. 18000/- as minimum pay as it would have been less than the actual pay + DA drawn by the employee. Even if we accept the 14.29% increase recommended by the 7th CPC, the minimum pay would have been Rs. 21,000/- and so the multiplication factor would have increased to 3 instead of 2.57. Employees and pensioners would have been benefitted significantly.

We were after the euphoria of a Pay Commission. We thought the CPC and the Government will deliver us good. It was a folly on our part in not clinching the demand of merger of 50% DA with effect from 01-01-2011. We shall blame ourselves for that. This is a lesson for us to be cautious in future.

Source: http://cgpakerala.blogspot.in/

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Expected DA July 2016 - AICPIN for the month of June 2016

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.

Sd/-

(SHYAM SINGH NEGI)

DEPUTY DIRECTOR GENERAL

Source: http://labourbureau.nic.in/

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Dearness Allowance Calculation in 7th CPC Gazette Notification

Dearness Allowance Calculation in 7th CPC Gazette Notification

The Recommendations on Allowances (except Dearness Allowance) will be referred to a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health and Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee will submit its report within a period of four months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances will continue to be paid at existing rates in existing pay structure, as if the pay had not been revised with effect from 1st day of January, 2016.

V. Dearness Allowance:

Sl. NO	Recommendation of the seventh Central Pay Commission	Decision of the Government
1	Existing formula and methodology for calculating Dearness Allowance to continue (Para 8.17.37 of the Report)	Accepted. The reference base for calculation of Dearness Allowance after coming into force of the revised Pay structure shall undergo change accordingly and will be linked to the average index as on 01.01.2016.

 Source:http://egazette.nic.in/WriteReadData/2016/170924.pdf

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7th CPC: Double Bonus for Government Employees – Salary Hike from August, Six Month Arrears in October – Social Media

Around 47 lakh Central Government employees are eagerly awaiting the salary hike, along with the 52 lakh pensioners who are expecting a significant increase in the monthly pension provided to them.

New Delhi, June 16: As per the latest updates related to 7th Pay Commission, the government is likely to give a double bonus for those working under the central government. According to reports, the Commission has decided that salaries would be hiked from August 1 and six months arrears will be paid to the employees in one installment in October.

As per the recent developments, the government has already started working to credit the hiked salaries in the accounts of employees from August 1, 2016. Around 47 lakh Central Government employees are eagerly awaiting the salary hike, along with the 52 lakh pensioners who are expecting a significant increase in the monthly pension provided to them which was also promised by Narendra Modi government.

The Seventh Pay Commission will be implemented from July and the increased payout will be credited in employee’s’ account on August 1.

On Thursday a news report suggested that the six months arrears from January to July will be handed before Dussehra festival which is in October.

An unidentified official working with the commission was quoted by The Financial Express saying, “Central government employees could get the revised pay-scales with their July salaries that would be credited on August 1?.

There was a meeting held on Tuesday where Cabinet Secretary P K Sinha along with other Empowered Committee of Secretaries sat for few hours and submitted its final report. Report suggest that, Secretaries Panel in its final report has recommended 30 per cent hike which is more than what was proposed by the pay panel i its November report.

The commission had earlier recommended a minimum monthly basic salary of Rs 18,000 and maximum of Rs 2,50,000. With the 30 per cent hike the minimum basic monthly pay will be Rs 23,500 and the maximum will be Rs 3,25,000. The new reforms will directly impact the Central Budget by Rs 73,650 crore and the Railway Budget by Rs 28,450 crore.

Source : India.com

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7th CPC DA : A decade-long journey begins!

7th CPC DA : A decade-long journey begins!

“The Dearness Allowance calculations as per the recommendations of the 6th Central Pay Commission come to an end; the method prescribed by the 7th Central Pay Commission comes into effect from Jan 2016 onward…!”

The 7th Central Pay Commission was appointed in order to evaluate the methods of calculating the salaries, incentives, benefits, pensions, retirement benefits, and Dearness Allowance of the Central Government employees and serving and retired personnel of the Indian defence forces, and suggest changes, if and when required. Four months have passed since the Central Pay Commission submitted its final report to the Centre.

The government at the centre has the discretion to accept, reject, or modify the recommendations made by the Central Pay Commission. It has constituted a high-level committee to look into the various suggestions in the report. The final decision on the implementation of the recommendations will be made based on the feedback from this empowered committee.

Meanwhile, the Central Government employees federations met with the high-level empowered committee to discuss various issues, including Minimum Wages and Fitment Factor, and to suggest required amendments in the report.

There is likely to be a delay in the publication of the notification containing the accepted recommendations by the 7th Pay Commission. Since the election Model Code of Conduct will be in place until the last week of May 2016, the Government acceptance notification is expected to be published in the first week of June. In that case, there are chances that the revised salaries will be issued from the month of June. Also, the arrears for the past five months are also likely to be released then.

Dearness Allowance is one of the much-anticipated topics among Central Government employees. In its report, the 7th Central Pay Commission had given a short explanation about Dearness Allowance. 

The 6th Central Pay Commission suggested elaborate changes in the method of calculating Dearness Allowance. This time however, the 7th Central Pay Commission did not suggest any elaborate changes. It has suggested that the same process be continued.

We have presented an easy-to-use calculator here for you to calculate the likely Dearness Allowance hike.

We have presented a ready reckoner of the procedures that were followed when the 5th Central Pay Commission drew to a close and the 6th Central Pay Commission came into effect, which are very likely to be followed this time too.

The AICPIN points of only the month of January are available as of now. The AICPIN points for February will be released tomorrow. You can come up with approximate AICPIN points for the remaining four months to calculate the approximate Dearness Allowance.

As of January 1, 2016, according to the Centre, the Dearness Allowance stood at 125 percent. An order of the Ministry of Finance to this effect will be released soon. In the event that the 7th Central Pay Commission recommendations come into effect from January 1, 2016 onwards, the salaries of the Central Government employees will be revised by adding 125 percent to their basic pay. The new Dearness Allowance hike will be issued from 01.07.2016 onwards.

For example, if the basic pay of an employee, as on 01.01.2016, is Rs.12,000 (Grade Pay 2800 + 9200), his salary revisions and Dearness Allowance hikes as per the 6th and 7th Central Pay Commission recommendations, are given below.

Employee’s Pay as on 1.1.2016 as per the recommendations of 6th CPC

Basic Pay + 125% DA: 12000 + 15000 = 27000

Employee’s Pay as on 1.1.2016 as per the recommendations of 7th CPC

Basic Pay + No DA: 31000 + 0 = 31000

(No Dearness Allowance for the period between Jan to Jun 2016 and the first instalment of additional DA will be given only on 1.7.2016)

Courtesy:http://7thpaycommissionnews.in/7th-cpc-da-a-decade-long-journey-begins/

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