Curious About Upcoming Industrial DA Changes? Here's What to Expect Next Quarter

Dear all, let me start a new thread regarding the above subject. In this thread, I intend to post the projected figure of Industrial DA which will be effective from the next quarter onwards, viz. 1st January - 31st March, 1st April - 30th June, 1st July - 30th September, and 1st October - 31st December.

As you know, the Industrial DA from 1.10.2010 onwards is 39.8% for the 1.1.2007 scale and 136.1% for the 1.1.1997 scale. Now, the projected figure from 1.1.2011 onwards is 41.7% (Difference 1.9%) for the 1.1.2007 scale and 139.3% (Difference 3.2%) for the 1.1.1997 scale.

Note: This is based on the AICPI up to 30.9.2010. The results of two more months, viz. Oct & Nov 2010, have to come for the final figure.

Regards, Abbas.P.S, ITI LTD, PALAKKAD - 678 623 [Phone Number Removed For Privacy Reasons].

As you know, the Industrial DA from 1.10.2010 onwards is 39.8% for the 1.1.2007 scale and 136.1% for the 1.1.1997 scale.

Now, the projected figure from 1.1.2011 onwards is 42.7% (Difference of 2.9%) for the 1.1.2007 scale and 141% (Difference of 4.9%) for the 1.1.1997 scale.

Note: This is based on the AICPI up to 31.10.2010. The result of one more month, namely Nov 2010, has to come for the final figure.

Regards,
Abbas.P.S

Understanding Wage Revision and DA Calculation

Considering the living cost and all, wage revision is being done once every five or ten years. However, inflation increases day by day, and subsequently, the value of money decreases. To compensate for this, we have to wait until the next wage revision, which is not practical. That is why the DA (Dearness Allowance) is introduced.

The devaluation of money can be assessed through the Wholesale Price Index and the All India Consumer Price Index (AICPI), etc. The difference between these two is that the price variation of all commodities is taken into account for the Wholesale Price Index.

Differences and Limitations of AICPI

1. There is a particular consumer, viz. Industrial Worker.
2. Some specified goods and services are defined, called a "basket of goods."
3. Along with the price variation of commodities, its consumable quantity will also be considered.
4. All over India, 78 centers are selected to take the average.

Based on the All India Consumer Price, Industrial DA is being paid; it varies in quarters commencing from January, April, July, and October. For January, the AICPI will be the average of the previous September, October, and November. Similarly, for April, it will be December, January, and February; for July, it will be March, April, and May; and for October, it will be June, July, and August, respectively.

When the money devaluation is fully compensated, it is called full DA neutralization. The formula for full DA neutralization is (Total points - Base points) / Base points (in percentage). The AICPI was introduced in India in 1960 and revised in 1982 and 2001. AICPI of 2001 x 4.63 gives AICPI of 1982, and AICPI of 1982 x 4.93 gives AICPI of 1960. For DA calculation, AICPI of 1960 is accepted as the base.

The indexes can be accessed from the web: Labour Statistics Page 2

Wage Settlements in India

Now in India, mainly two terms of wage settlements are in existence: Wage Settlements of 1.1.1997 and 1.1.2007. The base point on 1.1.1997 is 1708, and on 1.1.2007 is 2884.

I shall quote one example, i.e., the calculation of AICPI for July '10. This is equivalent to the average of the previous March, April, and May; which is recorded as 170, 170, and 172 (Base year 2001). Multiply by 4.63 and round, we get 787, 787, and 796 (Base year 1982). Multiply by 4.93 and round, we get 3880, 3880, and 3924 (Base year 1960). Find the average of these three and round, we get 3895.

DA Calculation Example

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 an Excel sheet for IDA calculation w.e.f 1.10.2008. You may extend the rows further (as necessary) and just enter the three indexes towards the year 2001 in green color columns. The results will appear in yellow, and red is used for static information.

Regards,
Abbas P.S.

Wishing you a happy and prosperous New Year 2011. As you know, the Industrial DA from 1.10.2010 onwards is 39.8% for the 1.1.2007 scale and 136.1% for the 1.1.1997 scale. From 1.1.2011 onwards, it is enhanced to 43% (a difference of 3.2%) for the 1.1.2007 scale and 141.5% (a difference of 5.4%) for the 1.1.1997 scale.

Regards,
Abbas.P.S

Industrial DA Projections Update

As you know, the Industrial DA from 01.01.2011 onwards is 43% for the 1.1.2007 scale and 141.5% for the 1.1.1997 scale. Now, the projected figure from 01.04.2011 onwards is 46.5% (Difference of 3.5%) for the 1.1.2007 scale and 147.4% (Difference of 5.9%) for the 1.1.1997 scale.

Note: This is based on the AICPI up to 31.12.2010, published on 31.01.2011. The results of two more months, namely Jan & Feb 2011, have to come in for the final figure.

Regards, Abbas.P.S

As you know, the Industrial DA from 01.01.2011 onwards is 43% for the 1.1.2007 scale and 141.5% for the 1.1.1997 scale.

Now, the projected figure from 01.04.2011 onwards is 48% (a difference of 5%) for the 1.1.2007 scale and 149.9% (a difference of 8.4%) for the 1.1.1997 scale.

Note: This is based on the AICPI up to 31.01.2011, published on 28.02.2011. The result of one more month, viz. Feb 2011, has to come for the final figure.

Regards,
Abbas.P.S

Dear Abbasiti, can you please explain the two scales you have mentioned above? Is it applicable to every cadre, and is this percentage calculated based on the basic or gross salary? Kindly help me understand the process.

Regards,
Neha

The Industrial DA mentioned above is applicable to Central Public Sectors (Government of India Undertakings). I don't know which other organizations follow the same pattern. In most of the PSUs, wage revision took place effective 01.01.2007. However, there are still many PSUs where the above wage revision is due but pending; accordingly, they follow the 01.01.1997 scales.

Abbas.P.S

Dear HR Team, I have reviewed the text you provided and made the necessary corrections for spelling, grammar, and punctuation errors:

"On 1st January 2007, the scale from April 2011 is 47.2% (a hike of 4.2% as of 1st January 2011) and for the scale from 1st January 1997, it is 148.6% (with a hike of 7.1%) for CPSE based on the data already provided by labor statistics.

Thank you.

BC Sahoo Asst. Manager NALCO [Phone Number Removed For Privacy Reasons]"

I have also ensured proper paragraph formatting for better readability. If you have any further questions or need additional assistance, please feel free to reach out.

Best regards

As you know, the Industrial DA from 1.4.2011 onwards is 47.2% for the 1.1.2007 scale and 148.6% for the 1.1.1997 scale. From 1.7.2011 onwards, it will continue as 47.2% for the 1.1.2007 scale and 148.6% for the 1.1.1997 scale (no difference).

Regards,
Abbas.P.S

Industrial DA Update for 1.4.2011 Onwards

As you know, the Industrial DA from 1.4.2011 onwards is 47.2% for the 1.1.2007 scale and 148.6% for the 1.1.1997 scale. This was due to the average AICPI of December 2010 (185 points), January 2011 (188 points), and February 2011 (185 points).

Now, the Industrial DA will continue at 47.2% for the 1.1.2007 scale and 148.6% for the 1.1.1997 scale (no difference). This is the result of the average AICPI of March 2011 (185 points), April 2011 (186 points), and May 2011 (187 points).

Regards,
Abbas.P.S

As you know, the Industrial DA from 01.07.2011 onwards is 47.2% for the 1.1.2007 scale and 148.6% for the 1.1.1997 scale.

Now, the projected figure from 01.10.2011 onwards is 49.6% (a difference of 2.4%) for the 1.1.2007 scale and 152.6% (a difference of 4%) for the 1.1.1997 scale. Please note that this is based on the AICPI up to 30.06.2011, published on 31.07.2011. The results of two more months, namely July and August 2011, are yet to be announced for the final figure.

Regards, Abbas.P.S

As you know, the Industrial DA from 01.07.2011 onwards is 47.2% for the 1.1.2007 scale and 148.6% for the 1.1.1997 scale.

Now, the projected figure from 01.10.2011 onwards is 51.7% (a difference of 4.5%) for the 1.1.2007 scale and 156.2% (a difference of 7.6%) for the 1.1.1997 scale.

Note: This is based on the AICPI up to 31.07.2011 published on 31.08.2011. The result of one more month, namely August 2011, has yet to be released for the final figure.

Regards,
Abbas.P.S

As you know, the Industrial DA from 01.07.2011 is 47.2% for the 1.1.2007 scale and 148.6% for the 1.1.1997 scale. Now, the new DA from 01.10.2011 onwards is 52% (a difference of 4.8%) for the 1.1.2007 scale and 156.6% (a difference of 8%) for the 1.1.1997 scale.

Regards,
Abbas.P.S

As you know, the Industrial DA from 01.10.2011 onwards is 52% for the 1.1.2007 scale and 156.6% for the 1.1.1997 scale. Now, the projected figure from 01.01.2012 onwards is 55.9% (Difference 3.9%) for the 1.1.2007 scale and 163.2% (Difference 6.6%) for the 1.1.1997 scale. Note: This is based on the AICPI up to 30.09.2011, published on 31.10.2011. The results of two more months, viz., October and November 2011, have yet to come for the final figure.

Regards, Abbas.P.S

Could anybody please send me the updated details of DA for Tamil Nadu and the Chennai region at the earliest possible?

Regards,
Rajkumar C
[Phone Number Removed For Privacy Reasons]

Dear friends,

As you know, the Industrial DA effective from 01.07.2015 for 2007 and 1997 scales is 102.6% and 242.1% respectively. With the release of the All India Consumer Price Index for the month of June 2015, the projected Industrial DA effective from 01.10.2015 will be 106.6% (an increase of 4%) and 248.7% (an increase of 6.6%) respectively.

Note: AICPI for July and August 2015 has yet to come. The final figures may vary accordingly.

Abbas.P.S