My Current Job Profile
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Assistant Engineer, Indian Telephone Industries,
However total of both Basic & DA should not be less then the minimum wages notified by the Govt with respect of that scheduled industries.
If any clarity further. call me on 96294 88214
20th November 2010 From Australia
21st November 2010 From India, Calcutta
DA is applicable, generally, in Government and Public Sector.
Which private organization gives you an allowance every month because the prices of goods and commodities hav gone up ??
Where Dearness Allowance is applicable; you do not need to re-invent them. There are systems, which are well laid out; to apply the price fluctuation in a basket of commodities (reflected by AICPI); and apportion it over a range of pay scales in several employment sectors such as Government, Industrial, banking, railways etc.; so that every three months an ordinary employee gets an amount of Dearness Allowance, that approximates the changes in the actual prices of Consumer goods.
There are several Indexes and neutralization schemes involved, which are beyond the scope of this thread. You should join a workshop conducted by the Govt./PSU's etc. on the subject.
22nd November 2010 From India, Delhi
I shall give some informations on All India Consumer Price Index and Idustrial DA as follows.
Considering the living cost and all, Wage Revision is being done once in five years or ten years. But inflation will go up day by day and subsequently the money value will come down. To compensate this we have to wait till the next Wage Revision, which is not practical. That is why the DA is introduced.
The devaluation of money can be assessed through Whole Sale Price Index, All India Cosumer Price Index etc. The difference between these two is that, price variation of all commodities are taken into account for Whole Sale Price Index.
But for AICPI there are some differences/ limitations.
1. There is a particular Consumer viz. Industrial Worker.
2. Some specified goods & services are defined, called "basket of goods".
3. Along with the price variation of commodities, its consumable quantity will also be considered.
4. All over India 78 Centres are selected to take average
Based on All India Consumer Price, Industrial DA being paid; variable in quarters commencing from January, April, July & October. I.e. for January the AICPI will be the average of previous September, October & November. Similarly for April it will be December, January & February, for July it will be March, April & May and for October it will be June, July & August respectively.
When the money devaluation is fully compensated it is called as full DA neutralisation. The formula for full DA neutralisation = (Total points - Base points)/ Base points (in percentage). The AICPI is introduced in India in 1960 and revised in 1982 & 2001. AICPI of 2001 x 4.63, we get AICPI of 1982 and AICPI of 1982 x 4.93, we get AICPI of 1960. For DA calculation AICPI of 1960 is accepted as the base.
Now in India mainly two term's wage settlements are in exist; Wage Settlements of 1.1.1997 & 1.1.2007. The base point in 1.1.1997 is 1708 & in 1.1.2007 is 2884.
I shall quote one example,i.e. calculation of AICPI for July '10. This is equalent to average of previous March, April & May; which recorded as 170, 170 & 172 (Base year 2001). Multiply with 4.63 and round, we get 787,787 & 796 (Base year 1982). Multiply with 4.93 and round, we get 3880,3880 & 3924 (Base year 1960). Find average of these 3 and round, we get 3895.
DA for 1.1.97 scale. Total points - 3895, Base points - 1708, Total - Base = 2187. % is 2187/1708 x 100 = 128.0 ( Correct to one decimal).
DA for 1.1.2007 scale. Total points - 3895, Base points - 2884, Total - Base = 1011. % is 1011/2884 x 100 = 35.1 ( Correct to one decimal).
I shall insert Excel sheet for IDA calculation w.e.f 1.10.2008. You may extent the rows further (as necessary) and just enter the 3 indexes towards the year 2001 in green colour columns. The results will appear in yellow and red is used for static informations.
ITI Employees' Association,
ITI Limited, PALAKKAD - 678 623,
+91 9447 467 667
AICPI (base 2001) can be had from the following site.
Labour Statistics Page 2
22nd November 2010 From India, Bangalore