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Tuesday, October 1, 2013

AICPI (IW) for the month of August 2013 – Expected DA from January 2014

AICPI-IW for the month of August 2013 has been released by Ministry of Labour recently. A press release has been issued by the Labour Bureau yesterday to the extent that the CPI (IW) Base Year 2001=100 raised from 235 to 237 in the end of August 2013.
 
The following table provides AICPI (IW) for the period from January 2013 to August 2013. These indicators together with AICPI (IW) for the months from September 2013 to December 20113 will be used to determine Dearness Allowance for Central Government Employees with effect from January 2014
 
 
MonthActual AICPI-IWExpected AICPI (IW) from Sep-2013 to Dec-2013Scenario IExpected AICPI (IW) from Sep-2013 to Dec-2013Scenario IIExpected AICPI (IW) from Sep-2013 to Dec-2013Scenario III
Jan 2013221
Feb 2013223
Mar 2013224
Apr 2013226
May 2013228
Jun 2013231
July 2013235
Aug 2013237
Sep 2013Yet to be released237238239
Oct 2013Yet to be released237239241
Nov 2013Yet to be released237240243
Dec 2013Yet to be released237241245
Estimated DA from January 201499%100%101%

Scenario -1

If we have no inflationary trend in commodities that are given weightage then CPI (IW) from September 2013 to December 2013 would remain at 237.  This is almost unlikely considering the past trend in CPI (IW). However, happening of this scenario would provide 9% DA increase from the existing 90% DA and Central Government Employees and Pensioners would be eligible for DA of 99% from January 2014.

Scenario -2

If we assume that Inflationary Trend in essential Commodities will be moderate and we have only one point increase in CPI (IW) , then Consumer Price Index (2001=100) from September 2013 to December 2013 will be 238, 239, 240,241 respectively. In that case DA for Central Government Employees and Pensioners will be fixed at 100% from January 2014.

Scenario -3

In this case, if we assume that All India CPI (IW) from September 2013 to December 2013 increases at the rate of 2 per month similar to its past trend , then Central Government Employees and pensioners would be entitled for Dearness Allowance of 101% from January 2014.
So, it is predicted that possibility of Scenario 2 or Scenario 3 coming true is more. In such case, Central Government Employees and Pensioners would get additional DA of either 10% or 11% from January 2014.
 
The more interesting point in these two scenario is when DA gets increased by 100% then employees would be entitled for addtional 25% increase in the following allowances as per recommendations of sixth pay commission implemented by Government.
 
Name of the Allowances & AdvancesOriginal Allowance as per 6CPCExisting amount of Allowance after DA increases by 50%Revised Allowances per month if DA increases by 100%
Children Education Allowance
Rs.1000
Rs.1250
Rs. 1500
Hostel Subsidy Allowance
Rs.3,000
Rs.3,750
Rs. 4500
Special Compensatory Hill Area Allowance
Rs.600 / Rs.480
Rs.750 / Rs.600
Rs. 900 / 720
Special CompensatoryScheduled / Tribal Area Allowance
Rs.400 / Rs.240
Rs.500 / Rs.300
Rs. 600 / 450
Project Allowance
Rs.1,500 / Rs.1,000
Rs.1,875 /Rs.1,250
Rs. 2250 / 1500
Speical Compensatory (Remote Locality) Allowance
Rs.2,600/Rs.2,100/Rs.1,500/Rs.400
Rs.3,250/Rs.2,625/Rs.1,875/Rs.500
Rs. 3900 / 3150 / 2250 / 600
Cycle Maintenance Allowance
Rs.60 (Per month)
Rs.75 (Per month)
Rs.90
Mileage for road journey/all components of daily allowance on tour/reimbursement for transfer of personal effects
Rs.500 / Rs.300 / Rs.200 / Rs.150 / Rs.100 
Rs.625 / Rs.375 / Rs.250 / Rs.190 / Rs.125(TA for personal effects-Rs.22.50 per km / Rs. 11.25 per km / Rs.6.90 per km)
Rs.555 / 450 / 300 / 225 / 150(TA for personal Effects – Rs. 27 per km / 13.50 per km / 6.90 per km)
Rates of Fixed Conveyance Allowance under SR-25 (Motor Car)
Rs.1,120 / Rs.1,680 / Rs.2,070 / Rs.2,430 / Rs.3,000
Rs.1,400 / Rs.2,100 / Rs.2,590 / Rs.3,040 / Rs.3,750
Rs.1680 / 2520 / 3105 / 3645 / 4500
Rates of Fixed Conveyance Allowance under SR-25 (Other modes)
Rs.370 / Rs.480 / Rs.640 / Rs.750 / Rs.850
Rs.470 / Rs.600 / Rs.800 / Rs.940 / Rs.1,070
Rs.555 / 720 / 960 / 1125 / 1275
Washing Allowance
Rs.60
Rs.75
Rs.90
Split Duty Allowance
Rs.200
Rs.250
Rs.300
Spl. Allowance for Child Carefor Women with Disabilitiesand Education Allowance for disabled children
Rs.1,000 per month
Rs.1,250 per month
Rs.1500
Cash Handling Allowance
Rs.600 / Rs.500 / Rs.400 / Rs.300 / Rs.150
Rs.750 / Rs.625 / Rs.500 / Rs.375 / Rs.190
Rs.900 / 750 / 600 / 450 / 225
Risk Allowance
DOPT 21012/1/2008-Estt.(Allowance)
12.3.2009
To be announced
Postgraduate Allowance
Rs.1,000 / Rs.600
Rs.1,250 / Rs.750
Rs. 1500 / 900
Desk Allowance
Rs.600
Rs.750
Rs.900
Bad Climate Allowance
Rs.400 / Rs.240
Rs.500 / Rs.300
Rs.600 / 360
Advances for purchase of Bicycle
Rs.3,000
Rs.3,750
Rs.4500
Advances for purchase of Warm clothing
Rs.3,000
Rs.3,750
Rs.4500
Festival Advance
Rs.3,000
Rs.3,750
Rs.4500
Natural Calamity Advance
Rs.3,000
Rs.3,750
Rs.4500

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