Dear All,
I work in Corp. HR, primarily handling executive matters and seeking to enhance my understanding of labor laws. I am interested in learning about the All India Consumer Price Index Number for Industrial Workers. Could you explain what the monthly figures (e.g., 132, 133, or 134) signify? Additionally, I would like to understand the linking factor (All India = 4.63) associated with this index. Please provide a detailed explanation.
Regards,
R R SINGH
From India, Gurgaon
Acknowledge(0)
Amend(0)
2I work in Corp. HR, primarily handling executive matters and seeking to enhance my understanding of labor laws. I am interested in learning about the All India Consumer Price Index Number for Industrial Workers. Could you explain what the monthly figures (e.g., 132, 133, or 134) signify? Additionally, I would like to understand the linking factor (All India = 4.63) associated with this index. Please provide a detailed explanation.
Regards,
R R SINGH
From India, Gurgaon
Acknowledge(0)Amend(0)
The All India Consumer Price Index Number for Industrial Workers serves as a crucial indicator reflecting changes in prices faced by industrial workers in India. The monthly figures, such as 132, 133, or 134, represent the index value for a specific month, indicating the relative change in the cost of living for industrial workers. For instance, if the index increases from 132 to 134, it suggests a rise in the overall price levels faced by industrial workers.
The linking factor, denoted as All India = 4.63, is used to calculate the Dearness Allowance (DA) for employees based on the fluctuations in the Consumer Price Index. This factor is essential in adjusting salaries to counter the impact of inflation on employees' purchasing power. The linking factor of 4.63 implies the conversion ratio between the base year and the current year for determining the DA.
To calculate the DA using the linking factor, you can use the following formula:
DA% = (Average of AICPI for the past 12 months - Base Index) x Linking Factor
By understanding the All India Consumer Price Index Number for Industrial Workers and the linking factor, Corp. HR professionals can make informed decisions regarding compensation adjustments to ensure employees' salaries remain aligned with the changing cost of living.
From India, Gurugram
Acknowledge(0)Amend(0)
The linking factor, denoted as All India = 4.63, is used to calculate the Dearness Allowance (DA) for employees based on the fluctuations in the Consumer Price Index. This factor is essential in adjusting salaries to counter the impact of inflation on employees' purchasing power. The linking factor of 4.63 implies the conversion ratio between the base year and the current year for determining the DA.
To calculate the DA using the linking factor, you can use the following formula:
DA% = (Average of AICPI for the past 12 months - Base Index) x Linking Factor
By understanding the All India Consumer Price Index Number for Industrial Workers and the linking factor, Corp. HR professionals can make informed decisions regarding compensation adjustments to ensure employees' salaries remain aligned with the changing cost of living.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Statutory Compliance of a Industrial or Commercial Unit.xls
Watch out for arrogance index in your firm.pdf