Expected DA DR from Jan 2016: Nov, 2015 CPI-IW released

As per Labour Bureau  Press Release the All-India CPI-IW for November, 2015 increased by 1 point and pegged at 270 (two hundred and seventy).  From this increase the Expected Dearness Allowance from Jan, 2016 is confirm to stand at 125%, but the AICPI Number for December, 2015 is yet to be released and only two point increase in December, 2016 AICPI-IW Number the expected DA will be 126%.

The Dearness Allowance from Jan, 2016 is important in view of 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.  The increase in Jan, 2016 DA will give the stress to Implementation Committee to change the Fitment Factor from 2.57 to 2.58.   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 126% with 2 point increase in next month's AICPIN 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		Aug-15	264	3075	256.25	121.36%
Sep+AICPIN		Sep-15	266	3088	257.33	122.30%
Oct+AICPIN		Oct-15	269	3104	258.67	123.45%
Nov+AICPIN		Nov-15	270	3121	260.08	124.67%
1st situation 2 Points increase in Dec AICPIN	2	Dec-15	272	3140	261.67	126.04%
	Expected DA from 01.01.2016 for 7th CPC Fitment Factor
2nd situation No increase in Dec AICPIN	0	Dec-15	270	3138	261.50	125.90%	125%
	Expected DA from 01.01.2016 for 7th CPC Fitment Factor
3rd situation 1 Point increase in Dec AICPIN	1	Dec-15	271	3139	261.58	125.97%	125%
	Expected DA from 01.01.2016 for 7th CPC Fitment Factor

Read more: http://www.staffnews.in/2016