Dearness Allowance close contact with AICPIN

Dearness Allowance for Central Government Employees as per 6th CPC.

        We are all well known that the Dearness allowance calculation is based on All India Consumer Price Index numbers. AICPIN has been published by Labour Bureau in every month,and an attached office of the Ministry of Labour & Employment, has been compiling Consumer Price Index Numbers for Industrial Workers (CPIIW) since its inception in the year 1946.

Earlier the Government of India accepted the recommendation through a scheme called “Cost of Living Index Numbers scheme” in the year 1941.

In 1946, started compiling and publishing an interim series of All India Average Working Class Cost of Living Index Numbers by Labour Bureau.

The Labour Bureau compiled and published centre-wise and all India Consumer Price Index Numbers for Industrial Workers with base year 1960=100 from August, 1968 to September, 1988.

Working Class Family Income & Expenditure Surveys were conducted by the Labour Bureau during the period 1970-71 at 60 centres and during the period 1981-82 at 70 centres belonging to All India and 6 additional centres. On the basis of the results of 1981-82 survey, a new series of centre-wise and all India Consumer Price Index Numbers for Industrial Workers with base year 1982=100 was compiled and published during the period October, 1988 to December, 2005.

The current series of Consumer Price Index Numbers for Industrial Workers with base year 2001=100 had been released with effect from January, 2006 index.

This series is based on the Working Class Family Income & Expenditure Surveys conducted during the period 1999-2000 at 78 important industrial centres throughout the country.

These Consumer Price Indices measure the changes in the level of retail prices of a fixed set of goods and services consumed by an average working class family in a given area, over time with reference to a base year.

These indices are utilised for regulation of wages and dearness allowance of millions of workers and employees in the country. These indices serve as important indicators of retail price movement in the country.

These are all the base information's about AICPIN for calculating dearness allowance to Central Government employees. We just go through the enhanced percentage of dearness allowance month by month in the below table…

Month /
Year

B.Y.
2001=100

Total of
12 Months

12 Months
Average

% Increase
over 115.763

App. DA

DA
%

Enhanced DA %

AICPIN Low

AICPIN High

AICPIN
Diff.

DA
Increasing %

Jan-06           0          
Jun-06 123 721 60.08     2   119 123 4  
Dec-06 127 1475 122.92 7.16 6.18 6 4% 123 127 4 200%
Jun-07 130 1523 126.92 11.16 9.64 9 3% 127 130 3 50%
Dec-07 134 1569 130.75 14.99 12.95 12 3% 130 134 4 33%
Jun-08 140 1623 135.25 19.49 16.84 16 4% 134 140 6 33%
Dec-08 147 1700 141.67 25.91 22.38 22 6% 140 147 7 38%
Jun-09 153 1775 147.92 32.16 27.78 27 5% 147 153 6 23%
Dec-09 169 1885 157.08 41.32 35.70 35 8% 153 169 16 30%
Jun-10 174 2015 167.92 52.16 45.05 45 10% 169 174 5 29%
Dec-10 185 2111 175.92 60.16 51.97 51 6% 185 189 4 13%
Jun-11 189 2203 183.58 67.82 58.59 58(Expected) 7% 185 189 4 14%

Source: www.cgstaffnews.com

Comments

Roop said…
As per the AICPI up to June 2011, The DA going to be increase by 7 %. But as we seen the highly increase the comodity prices in all sectors and a little amt. of da is given by govt. can anybody tell me why this so. Never tell me the da is based on AICPI. I know all these things and formula for calculating the DA. take the example of DA for 2010 (Two times DA ie. 8 % from jan - june and 10 % from July to Dec. whereas the the mahangaee was low at that time than today. please cleary any.)
Anonymous said…
Retirement age of Central Govt employees should not be raised as it will increase unemployment problem for the younger generations. Moreover the efficiency of the work will go down because of the older age. in fact I am of the view the govt should consider to bring down the retirement age to 58 instead of 60.

KMV Chennai
varshney said…
If the country can be run by young peoples of 70 to 80 years, what is the harm in increaing the age of employees to 65. In fact they will be more in tune with the politicians governing the country. The employment in govt sector is just 2% of the total employment of the country. So nothing will be achieved by the reduction in age. We should emphasise on opening of alternate avenues of employment rather than govt. Increase in retirement age will defer the money and will help in controlling inflation.
Anonymous said…
As per 6th pay commission report and ordered by Central Govt., 6 (six)months qualifing service is required for grant of Annual Increment on 1st July every year. A CG servant after completing 12 months successful qualifing service, he proceeding on superannuation retirement on 30th June, He is not being given Annual Increment with the result he would get less pension and benefits, even then he completed one (01) year qualifying service. The matter should be taken up with concerned body by staff side for grant of one Annual Increment to the CG employees going on superannuation retirement after completion of six months qualifying service.
shukla said…
Varshney thinks that the gvt. employees are only those who works in offices, tables, ac. cabins. as per his view the peons, gangmans, hamals, soldiers, are not gvt. employees. today when average life of man is just 60 yrs. the retirement age should be upto 50yrs. or maximum 55yrs.
shukla said…
aaj jab pyaaj 25 ke bhav par hai, doodh 50rs./liter, koi bhi bhaji 60 rs. se kam nahin hai etc. to gvt. kewal 7% DA dekar kutton ko haddi nahi de rahi hai?
Vishal Gupta said…
Vishal
I do not understand jab Gov. ne 8% aur 10% DA increase kiya tha to mhengayee itnee nahee thee lakin jab mahegayee itnee jayda badh rahee hai aur DA kul 7%, waha kiya bat hai. giverment nein AICPI mein jayda commedities ko lakar aacha nahee kiya hai, aakhir Gov nein to public kee idher se bhee what laga dee hai.

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