FUTURE COMPUTATION OF DEARNESS ALLOWANCE AND ADOPTION BASE
INDEX FIGURE TO REVISED MINIMUM WAGE – REGARDING
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.
Sincerely
yours
(Shiva Gopal Mishra)
Secretary (Staff Side)
National Council (JCM)
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