Revising AICPIN Average will take July DA to 3% – NCJCM Staff Side

Revising AICPIN Average will take July DA to 3% – NCJCM Staff Side

Shiva Gopal Mishra
Secretary

National council (Staff Side)
Joint Consultative Machinery for Central Government Employees
13-C, Ferozshah Road, New Delhi-110001
E-Mail : [email protected]

No.NC/JCM/2016

Dated: September 6, 2016

The Secretary(Expenditure),
Ministry of Finance,
(Government of India),
North Block, New Delhi-110 001

Dear Sir,

Sub: Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage – Regarding

The revised pay structure, as recommended by the 7th CPC, was given effect as on 01.01.2016 as per the Government’s Notification. The Dearness Allowance, which was computed at 125% ( i.e 125.75 fraction of 0.75 being ignored), got merged with Pay as on that date. The 7th CPC has not indicated as to what base figure of AICPI(IW) the Revised Wages will relate to hereafter wards. As you are aware, the actual DA that was due as on 01.01.2016 was 125.75. It is only due to the practice of ignoring fraction; the DA was determined at 125%. No doubt, the said practice had not been impacting very much except for the postponement of the benefit by six months. It is, therefore, necessary that, Revised Wages are related to a base index figure equivalent to actual Dearness Allowance percentage of 125 that stands merged as on 01.01.2016. This is more so due to the fact that there is no possibility of the ignored fraction of 0.75 being reckoned for any computation in future.

We, therefore, request that, 12 monthly average, which stood at 261.33 as on 31.12.2015, may be taken at 260.46, which would provide the exact percentage of DA at 125. The future percentage increase in DA in other words may be computed with the base figure of 260.46. The next instalment of DA, which has become due as on 1.07.2016 if computed on the above basis of 260.46, shall work out to 3.28%. On ignoring the faction, the DA with effect from 01.07.2016 shall be 3%. We, request you to kindly take the above into account and issue orders for grant of 3% DA w.e.f. 01.07.2016.

Comradely yours,
sd/-
(Shiva Gopal Mishra)
Secretary (staff side)
NC/JCM & Convener

Expected DA Calculator for January 2017 DA

Source: www.ncjcmstaffside.com

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1 thought on “Revising AICPIN Average will take July DA to 3% – NCJCM Staff Side”

  1. The DA due on 1-1-2016 was 125.75. But the practice of ignoring fraction made it 125. This is on the hope and trust that the fraction 0.75 will be added with the subsequent computation. But as the 7th CPC’s pay revision 0.75 was not carried over to subsequent computation. But it should not be vanished without taking in to account. The 125.75 may rounded off to 126 for arriving multiplying factor. As the fraction 0.75 crossed 0.50 the figure 125.75 may be rounded off to 126. It need not be for DA calculation but for arriving the multiplying factor as follow:
    DA due as 31-12-2016 is 125.75 = rounded off to 126.
    Arriving multiplying factor: 226X14% = 31.64
    Adding with Basic and DA = 226+31.64 = 257.64 = (rounded off to) 256.
    In percentage 2.56.
    In this computation the fraction0.75 will not be wanished.

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