125% Dearness Allowance from January 2016 is confirmed now after releasing of
December, 2015 AICPIN, which was already speculated by Seventh Pay Commission
and was taken as fitment factor for determination of new pay matrix.
As per Labour Bureau Press Release the All-India CPI-IW for December, 2015
decreased by 1 point and pegged at 269 (two hundred and sixty nine). From this
decrease the Expected Dearness Allowance from Jan, 2016 is confirm to stand at
125%.
The Dearness Allowance from Jan, 2016 is important factor of pay determination
in 7th CPC, which is due to implement with effect from 01.01.2016. The recommendations of 7th CPC has taken the expected DA @ 125% for the purpose of minimum pay determination and the fitment factor for new pay structure.
Now the speculation of this DA by 7th CPC is correct and only minimum wages will
be the main factor to increase the Fitment Factor from 2.57, which is main
demand of employees. The line of recommendations of 7th CPC regarding Fitment Factor are given below:-
Fitment
5.1.27 The starting point for the first level of the matrix has been set at Rs.18,000. This corresponds to the starting pay of Rs. 7,000, which is the beginning of PB-1 viz., Rs.5,200 + GP 1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.
How the DA from Jan, 2016 calculated to be 125% with AICPIN of Dec-2015 is clear from undermentioned table:-
Expected DA/DR from Jan, 2016 – Table by www.staffnews.in
| Expect- ation |
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 |
| 0 | Dec,14 | 253 | 2963 | 246.92 | 113.30% | 113% | |
| Expected DA from July, 2015 is to be announced by Govt. DA/DR from July, 2015 |
1 | Jan,15 | 254 | 2980 | 248.33 | 114.52% | 119% |
| -1 | Feb,15 | 253 | 2995 | 249.58 | 115.60% | ||
| 1 | Mar,15 | 254 | 3010 | 250.83 | 116.68% | ||
| 2 | Apr,15 | 256 | 3024 | 252.00 | 117.69% | ||
| 2 | May,15 | 258 | 3038 | 253.17 | 118.70% | ||
| 3 | Jun,15 | 261 | 3053 | 254.42 | 119.78% | ||
| Jul+AICPIN | 2 | Jul,15 | 263 | 3064 | 255.33 | 120.57% | 126% |
| Aug+AICPIN | 1 | Aug-15 | 264 | 3075 | 256.25 | 121.36% | |
| Sep+AICPIN | 2 | Sep-15 | 266 | 3088 | 257.33 | 122.30% | |
| Oct+AICPIN | 3 | Oct-15 | 269 | 3104 | 258.67 | 123.45% | |
| Nov+AICPIN | 1 | Nov-15 | 270 | 3121 | 260.08 | 124.67% | |
| Dec+AICPIN | -1 | Dec-15 | 269 | 3137 | 261.42 | 125.83% |
|
| Expected DA from 01.01.2016 for 7th CPC Fitment Factor | |||||||
You may also download/save the excel sheet for self calculation. The link for excel sheet is given below:
DOWNLOAD: EXCEL FILE FOR EXPECTED DEARNESS CALCULATION TO CALCULATE YOURSELF [click on File-Menu & download]
Press Release of AICPIN for Dec 2015 – 1 Points decreased and pegged at 269:-
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU
Press Release
Consumer Price Index for Industrial Workers (CPI-IW) – December, 2015
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