Aicpin for the month of January, 2016 – expected dearness allowance with effect from July- 2016
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
DATED: 29th February, 2016
Consumer Price Index for Industrial Workers (CPI-IW) – January, 2016
The All-India CPI-IW for January, 2016 remained stationary at 269 (two hundred and sixty nine). On 1-month percentage change, it remained static between December, 2015 and January, 2016 when compared with the rise of 0.40 per cent between the same two months a year ago.
The largest upward pressure to the change in current index came from Housing group contributing (+) 1.11 percentage points to the total change. At item level, Wheat, Wheat Atta, Groundnut Oil, Fish Fresh, Eggs (Hen), Goat Meat, Poultry (Chicken), Milk (Buffalo & Cow), Garlic, Sugar, Bidi, Firewood, Medicine (Allopathic), Barber Charges, Flower/Flower Garlands, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was checked by Rice, Arhar Dal, Gram Dal, Masur Dal, Moong Dal, Urd Dal, Mustard Oil, Coconut Oil, Onion, Vegetable and Fruit items, Petrol, etc., putting downward pressure on the index.
The year-on-year inflation measured by monthly CPI-IW stood at 5.91 per cent for January, 2016 as compared to 6.32 per cent for the previous month and 7.17 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 7.61 per cent against 7.94 per cent of the previous month and 7.81 per cent during the corresponding month of the previous year.
At centre level, Haldia reported the maximum increase of 8 points followed by Jamshedpur (7 points) and Labac-Silchar (5 points). Among others, 4 points increase was observed in 6 centres, 3 points in another 6 centres, 2 points in 9 centres and 1 point in 14 centres. On the contrary, Bhilai recorded a maximum decrease of 9 points followed by Bokaro (6 points) and Ranchi-Hatia and Varanasi (4 points each). Among others, 3 points decrease was observed in 2 centres, 2 points in 11 centres and 1 point in 10 centres. Rest of the 13 centres’ indices remained stationary.
The indices of 34 centres are above All-India Index and other 40 centres’ indices are below national average. The indices of Salem, Varanasi, Jabalpur and Vishakhapathnam centres remained at par with All-India Index.
The next issue of CPI-IW for the month of February, 2016 will be released on Thursday, 31st March, 2016. The same will also be available on the office website WWW. labourbureaunew.gov.in.
EXPECTED DA W.E.F. JULY 2016
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 has been announced 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 and central government employees will get the first benefit of DA w.e.f. July 2016 based upon AICPIN from Jan 2016 to 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.
The All-India CPI-IW for January, 2016 remained stationary at 269 (two hundred and sixty nine) and with implementation of 7th Pay Commission and OROP inflation is not expected to come down.
Let’s assume that AICPIN would stay at 269, if it stays at 269 then based on calculation DA would be 132.357 which is rounded to 132%. Presently Dearness Allowance is 125%.
Therefore expected DA in July would be 7%
Please Note:- These calculations are based upon assumption that AICPIN stays at 269 for another five months. www.govemployees.in won’t be responsible for any changes. Actual DA w.e.f. July 2016 would be calculated on the Average of AICPIN from Jan – June, 2016.