DA 2015

Dearness Allowance from July 2015 – Union Cabinet Likely To Approve 6% Hike Today

SEPTEMBER 9 2015 admin

Union Cabinet Likely To Approve 6% DA Hike Today

The Union Cabinet is likely to consider tomorrow a proposal to increase dearness allowance to 119 per cent from 113 per cent, which if cleared will potentially benefit over 30 lakh central government employees and 50 lakh pensioners including dependents.

“The proposal to increase dearness allowance by six percentage points to 119 per cent is likely to be taken up by the Cabinet tomorrow,” a source said.

Earlier in April, the government had hiked DA by 6 per cent to 113 per cent of their basic pay with effect from January. DA is paid as proportion of the basic pay.

The proposed DA hike will take effect from July 1. As per the agreed formula, the DA rate increase is an average of 12-month consumer price index-industrial workers from July 1, 2014 to June 30, 2015.

The proposed hike is in accordance with the accepted formula based on the recommendations of the 6th Pay Commission.

However, president of Confederation of Central Government Employees’ and Workers KKN Kutty said: “The government should have given interim relief and merged DA with basic pay in view of the extension of term of the Seventh Pay Commission by four months till December 31, 2015.”

Elaborating, Kutty added: “The government assured employees that the Seventh Pay Commission will submit its report in 18 months. It’s delaying submission of the report by the commission because it doesn’t want to increase its salaries bill this fiscal.”

He further said that keeping in view the real rate of price rise, DA should have been 185 per cent of the basic pay.

Last month, the Cabinet had given approval for the extension of the term of the Seventh Pay Commission by four months up to December 31.

Source : http://economictimes.indiatimes.com/

JULY MONTH DA 2015

Consumer Price Index for Industrial Workers (CPI-IW) - May, 2015

The All-India CPI-1W for May, 2015 increased by 2 points and pegged at 258 (two hundred and fifty eight). On l-month percentage change, it increased by 0.78 per cent between April, 2015 and May, 2015 when compared with the increase of (+) 0.83 per cent between the same two months a year ago. 

The maximum upward pressure to the change in current index came from Food group contributing (+) 1.96 percentage points to the total change. At item level, Rice, Arhar Dal, Gram Dal, Masur Dal, Moong Dal, Urd Dal, Groundnut Oil, Mustard Oil, Fish Fresh, Goat Meat, Poultry (Chicken), Onion, Vegetable items, Electricity Charges, Petrol, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was restricted by Wheat, Wheat Atta, Gourd, Torai, Lady’s Finger, Mango, Sugar, Bus Fare, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-1W stood at 5.74 per cent for May, 2015 as compared to 5.79 per cent for the previous month and 7.02 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 5.99 per cent against 5.68 per cent of the previous month and 7.66 per cent during the corresponding month of the previous year.

At centre level, Mercara, Bokaro, Coonoor, Belgaum and Madurai reported the highest increase of 8 points each followed by Tiruchirapally (7 points). Among others, 6 points increase was observed in 4 centres, 5 points in 5 centres, 4 points in 12 centres, 3 points in 9 centres, 2 points in 10 centres and 1 point in 15 centres. On the contrary, Srinagar and Rangapara Tezpur centres recorded a maximum decrease of 3 points each followed by Darjeeling (2 points). Among others, 1 point decrease was observed in 4 centres. Rest of the 10 centres’ indices remained stationary.

The indices of 37 centres are above All India Index and other 40 centres’ indices are below national average. The index of Tiruchirapally is at par with all-India index.

The next index of CPI-1W for the month of June, 2015 will be released on Friday, 3 lst July, 2015. The same will also be available on the office website www.1obourbureau. gov. in.

(S.S.NEGI)

DEPUTY DIRECTOR GENERAL

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