All India Consumer s Price Index AICPIN forMARCH 2015

AICPIN for MARCH 2015 is declared on 30.4.2015, which INCREASED by one point and pegged at 354. The effect on expected D.A. would be posted searately

Tamil Nadu government announces 6% D.A. rise from January 2015

The Tamil Nadu government  announced a six per cent increase in DA for its employees, a move that will incur an additional expenditure of Rs 1,222.76 crore on the state exchequer.

The hike would be implemented with retrospective effect from January 1, 2015 and will apply to employees in local administration, teaching and non-teaching staff in government-aided educational institutions, village assistants, anganwadi workers, and others, an official release said.

The DA increase will result in a hike of Rs 366-Rs 4,620 in the monthly wages of government employees and a total of 18 lakh staff and pensioners will benefit, it said.

Odisha govt. declares 6% DA rise to state govt. employees from January 2015

The Odisha Government has declared rise in dearness allowances (DA) for all state government employees by 6% to take it 113% on basic salary. The hike will be implemented from January 1, 2015. Around four lakh government employees in Odisha will be benefited from this.

The last DA hike was announced by the state government on October 15, 2015. It was made effective from 1st July, 2014. With 7% hike, the DA rate on Basic Pay was raised to 107%.

CABINET APPROVES 6% D.A. HIKE TO CENTRAL GOVT EMPLOYEES FROM JANUARY 2015 (1-1-2015)

 The union cabinet on 7-4-2015 approved a 6% hike in dearness allowance for central government employees and dearness relief for pensioners.

With this, the total  DA/DR has incresed to 113% of basic pay from 107%  with effect from January 1, 2015.(1-1-2015).

This will benefit 48 lakh government employees and 55 lakh pensioners.

EXPECTED D.A. RISE FROM JULY 2015 AFTER DECLARATION OF AICPIN FOR FEBRUARY 2015

The AICPIN for February 2015 is declared on 31-3-2015 which deccreased by one point and pegged  at 253 points.Thus with present scenario, the estimation of DA rise w.e.f. 1-7-2015 has become a complex exercise. For this purpose, we would consider folowing cases:

CASE-I:  There is no change in AICPIN for next 4 months : 

         Let us assume that for next 4 months i.e. March 2015 to June 2015, the AICPIN neither rises nor declines and remains constant at 253 points for all these months. The calculation of DA rise in this case indicates that, the DA rise would be 5% w.e.f. 1-7-2015.

CASE-II:  The AICPIN increases by one point every month for next 4 months:

The calculation of DA rise in this case  indicates that the DA rise would be 6% w.e.f. 1-7-2015.

CASE-III:  The AICPIN increases by TWO points every month for next 4 months:

The calculation of DA rise in this case  indicates that the DA rise would be 7% w.e.f. 1-7-2015.

CASE-IV:  The AICPIN increases alternatively by TWO points  and ONE point every month for next 4 months: 

The calculation of DA rise in this case  indicates that the DA rise would be 6% w.e.f. 1-7-2015.

CASE-V:  The AICPIN increases alternatively by ONE points  and TWO points every month for next 4 months: 

The calculation of DA rise in this case  indicates that the DA rise would be 6% w.e.f. 1-7-2015.

CASE-VI:  The AICPIN increases  by ONE,TWO AND THREE  points  respectively  for FIRST 3 MONTHS and again by ONE   point   for NEXT 1 MONTH:

Let AICPIN increases to 254 points for March 2015 and 256 points for April 2015. Then AICPIN rises to 259 points  for May 2015 and 260 points for June 2015.
The calculation of DA rise in this case  indicates that the DA rise would be 6% w.e.f. 1-7-2015.

CASE-VII:  The AICPIN increases by THREE points every month for next 4 months::

The calculation of DA rise in this case indicates that the DA rise would be 7% w.e.f. 1-7-2015.

CONCLUSION:  By analysing above different situatios, we can conclude that minimum DA rise may be 5% and maximum 7% w.e.f. JULY 2015.  However effect of  decline in AICPIN is not considered at this stage.We will discuss the same also whenever such situation arises.