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

AICPI (IW) for the month of August 2013 – Expected DA from January 2014 is 100% or 101% – Allowances that are linked with DA would increase by 25%

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

How to calculate DA from All India Consumer Price Index? Click here to know.

Month Actual AICPI-IW Expected AICPI (IW) from Sep-2013 to Dec-2013Scenario I Expected AICPI (IW) from Sep-2013 to Dec-2013Scenario II Expected AICPI (IW) from Sep-2013 to Dec-2013Scenario III
Jan 2013 221
Feb 2013 223
Mar 2013 224
Apr 2013 226
May 2013 228
Jun 2013 231
July 2013 235
Aug 2013 237
Sep 2013 (update) 238 237 238 239
Oct 2013 (Update) 241 237 239 241
Nov 2013 Yet to be released 237 240 243
Dec 2013 Yet to be released 237 241 245
Estimated DA from January 2014 99% 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 & Advances Original Allowance as per 6CPC Existing 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

 

DA Calculator to estimate Central Government Employees DA from January 2014

Souce: Labour Bureau

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