Dear Friends,
As you know, the Industrial DA with effect from 01.01.2017 for the 2007 and 1997 Scales is 119.5% and 270.7% respectively. With the release of the All India Consumer Price Index for the month of December 2016, the projected Industrial DA with effect from 01.04.2017 will be 117.7% (a decrease of 1.8%) and 267.4% (a decrease of 3.3%) respectively.
Note: AICPI for January and February 2017 are yet to come. The final figures may vary accordingly.
Abbas. P. S.
ITI LIMITED,
PALAKKAD - 678 623.
From India, Bangalore
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530As you know, the Industrial DA with effect from 01.01.2017 for the 2007 and 1997 Scales is 119.5% and 270.7% respectively. With the release of the All India Consumer Price Index for the month of December 2016, the projected Industrial DA with effect from 01.04.2017 will be 117.7% (a decrease of 1.8%) and 267.4% (a decrease of 3.3%) respectively.
Note: AICPI for January and February 2017 are yet to come. The final figures may vary accordingly.
Abbas. P. S.
ITI LIMITED,
PALAKKAD - 678 623.
From India, Bangalore
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Dear Abbas, Greetings of the day!!! Nice sharing! Please share calculation and theory behind this calculation for future reference.
From India, Pune
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From India, Pune
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Dear Ashish,
Considering the cost of living and other factors, wage revision is typically done once every five or ten years. However, with inflation on the rise daily, the value of money decreases over time. Waiting until the next wage revision to compensate for this is not practical, which is why Dearness Allowance (DA) is introduced.
The devaluation of money can be measured using indices such as the Wholesale Price Index and the All India Consumer Price Index. The key distinction between these two indices is that the Wholesale Price Index considers price variations of all commodities.
On the other hand, the All India Consumer Price Index has certain limitations:
1. It focuses on a specific consumer group, namely Industrial Workers.
2. It defines a set of goods and services known as the "basket of goods."
3. It takes into account both the price variation of commodities and their consumable quantities.
4. A total of 78 centers across India are selected to calculate the average.
Industrial DA is determined based on the All India Consumer Price Index and is paid quarterly, starting in January, April, July, and October. For example, the AICPI for January is the average of the previous September, October, and November readings. Similarly, for April, it is based on December, January, and February; for July, March, April, and May; and for October, June, July, and August.
When full compensation for money devaluation is achieved, it is referred to as full DA neutralization. The formula for full DA neutralization is calculated as (Total points - Base points) / Base points (in percentage). The All India Consumer Price Index was introduced in India in 1960 and revised in 1982 and 2001. The base for DA calculation is the AICPI of 1960.
For wage settlements in India, two significant points are considered: 1.1.1997 and 1.1.2007, with base points of 1708 and 2884, respectively.
An example calculation for AICPI in July '10 involves averaging the numbers from the previous March, April, and May. By applying the relevant multipliers, the final AICPI for that period can be determined.
The details for IDA calculation starting from 1.10.2008 are provided in an Excel sheet, with green columns reserved for entering the necessary indexes towards the year 2001. The results will be displayed in yellow, while red indicates static information.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Considering the cost of living and other factors, wage revision is typically done once every five or ten years. However, with inflation on the rise daily, the value of money decreases over time. Waiting until the next wage revision to compensate for this is not practical, which is why Dearness Allowance (DA) is introduced.
The devaluation of money can be measured using indices such as the Wholesale Price Index and the All India Consumer Price Index. The key distinction between these two indices is that the Wholesale Price Index considers price variations of all commodities.
On the other hand, the All India Consumer Price Index has certain limitations:
1. It focuses on a specific consumer group, namely Industrial Workers.
2. It defines a set of goods and services known as the "basket of goods."
3. It takes into account both the price variation of commodities and their consumable quantities.
4. A total of 78 centers across India are selected to calculate the average.
Industrial DA is determined based on the All India Consumer Price Index and is paid quarterly, starting in January, April, July, and October. For example, the AICPI for January is the average of the previous September, October, and November readings. Similarly, for April, it is based on December, January, and February; for July, March, April, and May; and for October, June, July, and August.
When full compensation for money devaluation is achieved, it is referred to as full DA neutralization. The formula for full DA neutralization is calculated as (Total points - Base points) / Base points (in percentage). The All India Consumer Price Index was introduced in India in 1960 and revised in 1982 and 2001. The base for DA calculation is the AICPI of 1960.
For wage settlements in India, two significant points are considered: 1.1.1997 and 1.1.2007, with base points of 1708 and 2884, respectively.
An example calculation for AICPI in July '10 involves averaging the numbers from the previous March, April, and May. By applying the relevant multipliers, the final AICPI for that period can be determined.
The details for IDA calculation starting from 1.10.2008 are provided in an Excel sheet, with green columns reserved for entering the necessary indexes towards the year 2001. The results will be displayed in yellow, while red indicates static information.
Abbas.P.S
From India, Bangalore
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Dear Friends,
As you know, the Industrial DA with effect from 01.01.2017 for the 2007 & 1997 Scales are 119.5% and 270.7%, respectively. With the release of the All India Consumer Price Index for the months of December 2016 & January 2017, the projected Industrial DA with effect from 01.04.2017 will be 117.2% (a decrease of 2.3%) & 266.7% (a decrease of 4%), respectively.
Note: AICPI for January & February 2017 are yet to come. The final figure may vary accordingly.
Abbas.P.S, ITI LIMITED, PALAKKAD - 678 623.
From India, Bangalore
Acknowledge(0)Amend(0)
As you know, the Industrial DA with effect from 01.01.2017 for the 2007 & 1997 Scales are 119.5% and 270.7%, respectively. With the release of the All India Consumer Price Index for the months of December 2016 & January 2017, the projected Industrial DA with effect from 01.04.2017 will be 117.2% (a decrease of 2.3%) & 266.7% (a decrease of 4%), respectively.
Note: AICPI for January & February 2017 are yet to come. The final figure may vary accordingly.
Abbas.P.S, ITI LIMITED, PALAKKAD - 678 623.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Friends,
As you know, the Industrial DA with effect from 01.01.2017 for the 2007 & 1997 Scales are 119.5% and 270.7% respectively. With the release of the All India Consumer Price Index for the months of December 2016 & January 2017, the projected Industrial DA with effect from 01.04.2017 will be 117.2% (a decrease of 2.3%) & 266.7% (a decrease of 4%) respectively.
Note: AICPI for January & February 2017 are yet to come. The final figures may vary accordingly.
Abbas.P.S, ITI LIMITED, PALAKKAD - 678 623.
From India, Bangalore
Acknowledge(0)Amend(0)
As you know, the Industrial DA with effect from 01.01.2017 for the 2007 & 1997 Scales are 119.5% and 270.7% respectively. With the release of the All India Consumer Price Index for the months of December 2016 & January 2017, the projected Industrial DA with effect from 01.04.2017 will be 117.2% (a decrease of 2.3%) & 266.7% (a decrease of 4%) respectively.
Note: AICPI for January & February 2017 are yet to come. The final figures may vary accordingly.
Abbas.P.S, ITI LIMITED, PALAKKAD - 678 623.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Friends,
As you know, the Industrial DA with effect from 01.01.2017 for the 2007 & 1997 Scales is 119.5% and 270.7% respectively. With the release of the All India Consumer Price Index for the months of December 2016, January, and February 2017, the Industrial DA with effect from 01.04.2017 will be 117.2% (a decrease of 2.3%) and 266.7% (a decrease of 4%) respectively.
Abbas P.S,
ITI LIMITED,
PALAKKAD - 678 623
From India, Bangalore
Acknowledge(0)Amend(0)
As you know, the Industrial DA with effect from 01.01.2017 for the 2007 & 1997 Scales is 119.5% and 270.7% respectively. With the release of the All India Consumer Price Index for the months of December 2016, January, and February 2017, the Industrial DA with effect from 01.04.2017 will be 117.2% (a decrease of 2.3%) and 266.7% (a decrease of 4%) respectively.
Abbas P.S,
ITI LIMITED,
PALAKKAD - 678 623
From India, Bangalore
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SC on wages, wage revision & Industrial Disputes.pdf