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Showing posts with label DEARNESS ALLOWENCE. Show all posts
Showing posts with label DEARNESS ALLOWENCE. Show all posts

Expected DA from January 2016 – Two Point increase in Dec 2015 may change 7th Pay Commission fitment formula :

 

Expected DA from January 2016 – Two Point increase in CPI for Dec 2015 could take it to 126% which is 1% more than what was reckoned for 7th Pay Commission revised Pay fixation.da-jan-thumb

If DA from January 2016 touches 126%, 7th Pay Commission fitment formula and Multiplication factor of 2.57 may require upward revision

Consumer Price Index (Industrial Workers) for the month of November 2015 has been released recently by Govt. We have one point increase in CPI for November 2015 which has moved from 269 to 270.

Consumer Price Index from January 2015 to November 2015

Month Actual AICPI-IW
Jan-2015 254
Feb-2015 253
Mar-2015 254
Apr-2015 256
May-2015 258
Jun-2015 261
July-2015 263
Aug-2015 264
Sep-2015 266
Oct-2015 269
Nov-2015 270
Dec-2015 Not released

DA from January 2016 – Estimation for 125%:

Based on actual CPI-IW for 11 months from January 2015 to November 2015 which span from 254 to 270 and estimated index for the month of December 2015, it is almost certain that Dearness Allowance from January 2016 payable to Central Government Employees including Railway Employees and Defence Personnel will not be less than 125% (6% increase).
Even a 12 point fall in CPI-IW from 270 to 258 in December 2015 will not affect the DA from January 2016 clocking 125%.
DA from Jan 2016= [(254+253+254+256+258+261+263+264+266+269+270+258)-115.76]*100/115.76
= 125 % (6% increase in DA from Jan 2016)

DA from January 2016 – Estimation for 126%:

Our Proposition discussed in the earlier article on the chances for DA from January 2015 reaching 126% (7% increase) still holds good as two point increase in the CPI-IW in December 2015 would take DA from January 2016 to 126%.
Click here to read: DA from January 2016 may touch 126%

CENTRAL GOVERNMENT DEARNESS ALLOWANCE INCREASED FROM JULY 2015:

 
NEW DELHI: Good news for central government employees. The Union Cabinet on Wednesday cleared a proposal to increase dearness allowance (DA) to 119% from 113%, which will potentially benefit over one crore government employees and pensioners.
The proposal to increase DA by six percentage points was taken at a meeting by the Union Cabinet.
DA is paid as proportion of the basic pay.
Earlier in April, the government had hiked DA by 6% to 113% of their basic pay with effect from January.
The proposed DA hike will take effect from July 1. As per the agreed formula, the DA rate increase is an average of 12-month consumer price index-industrial workers from July 1, 2014 to June 30, 2015.
The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th pay commission, which will benefit 48 lakh government employees and 55 lakh pensioners.
Last month, the Cabinet had given approval for the extension of the term of the 7th Central pay commission by four months up to December 31. 


  • 6% DA INCREASED JULY 2015 GO CLICK HERE(UPDATED SOON)

Central government employees are likely to get 6% DA w.e.f January 2015:

 

Image result for da hike 6% january 2015
DA for January 2015
Presently, the AICPIN value for the month of December has been released.(253) We need the AICPIN value for the past 12 months in order to calculate how much DA we will get in January 2015. Accordingly, the AICPIN value of all the twelve months has been released now. I have provided the data for your reference below:
Table showing AICPIN value of the past 12 months
Jan-14237
Feb-14238
Mar-14239
April-14242
May-14244
Jun-14246
July-14252
Aug-14253
Sep-14253
Oct-14253
Nov-14254
Dec-14253
In the above table, we can see that the AICPIN value for a period of fIVE months has remained constantly at 253. If we calculate the DA, based on the AICPIN value of twelve months, we arrive at a DA value of 113%. When we compare this DA percentage with the previous one, we find that it has increased by 6%. It is expected that this 6% DA increase will be officially released in the end of February or first week of March after it is approved by the Cabinet.
DA CALCULATION TABLE
Jan-14
237
2802
233.50
117.74
101.71

Feb-14
238
2817
234.75
118.99
102.79

Mar-14
239
2832
236.00
120.24
103.87

Apr-14
242
2848
237.33
121.57
105.02

May-14
244
2864
238.67
122.91
106.17

Jun-14
246
2879
239.92
124.16
107.25
107
Jul-14
252
2896
241.33
125.57
108.47

Aug-14
253
2912
242.67
126.91
109.63

Sep-14
253
2927
243.92
128.16
110.71

Oct-14
253
2939
244.92
129.16
111.57

Nov-14
253
2949
245.75
129.99
112.29

Dec-14
253
2963
246.92
131.16
113.30
113
The DA that we will get for the month of July 2015 will depend on the AICPIN value that is released between the months of January 2015 to June 2015.