What Variable Dearness allowance Pls Explain Regards, Manikandan R
From India, Madras
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1From India, Madras
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Considering the living cost and all, wage revision is being done once every five or ten years. However, inflation will continue to rise day by day, leading to a decrease in the value of money. To address this issue, we would have to wait until the next wage revision, which is not practical. This is why the Dearness Allowance (DA) is introduced.
The devaluation of money can be assessed through the Wholesale Price Index, All India Consumer Price Index, etc. The main difference 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 some specific limitations:
1. It focuses on a particular consumer group, namely Industrial Workers.
2. It defines a set of specified goods and services known as the "basket of goods."
3. In addition to price variations, the quantity of goods consumed is also considered.
4. An average is taken from 78 selected centers across India.
Based on the All India Consumer Price Index, Industrial Dearness Allowance (DA) is paid quarterly starting from January, April, July, and October. For instance, the January index is the average of the previous September, October, and November indices. Similarly, the April index is calculated from December, January, and February; July from March, April, and May; and October from June, July, and August.
When the devaluation of money is fully compensated, it is known as full DA neutralization. The formula for full DA neutralization is: (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. By multiplying the AICPI of 2001 by 4.63, we obtain the AICPI of 1982, and by multiplying the AICPI of 1982 by 4.93, we get the AICPI of 1960. The base for DA calculation is the AICPI of 1960.
In India, there are mainly two wage settlement terms in existence: Wage Settlements of 1.1.1997 and 1.1.2007. The base points for these settlements are 1708 and 2884, respectively.
I will provide an example of calculating the AICPI for July '10. This involves averaging the indices of the previous March, April, and May, which are recorded as 170, 170, and 172 (Base year 2001). After calculations, the average is determined to be 3895.
For the 1.1.97 scale, the DA percentage is calculated based on the total points of 3895 and the base points of 1708, resulting in a percentage of 128.0. Similarly, for the 1.1.2007 scale, the percentage is calculated using total points of 3895 and base points of 2884, resulting in a percentage of 35.1.
I will insert an Excel sheet for Industrial Dearness Allowance (IDA) calculation effective from 1.10.2008. The results will be highlighted in yellow, while red is used for static information.
With regards,
ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Limited, PALAKKAD - 678 623,
KERALA, INDIA.
+91 9447 467 667
AICPI (base 2001) can be obtained from the following site: Labour Statistics Page 2.
From India, Bangalore
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The devaluation of money can be assessed through the Wholesale Price Index, All India Consumer Price Index, etc. The main difference 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 some specific limitations:
1. It focuses on a particular consumer group, namely Industrial Workers.
2. It defines a set of specified goods and services known as the "basket of goods."
3. In addition to price variations, the quantity of goods consumed is also considered.
4. An average is taken from 78 selected centers across India.
Based on the All India Consumer Price Index, Industrial Dearness Allowance (DA) is paid quarterly starting from January, April, July, and October. For instance, the January index is the average of the previous September, October, and November indices. Similarly, the April index is calculated from December, January, and February; July from March, April, and May; and October from June, July, and August.
When the devaluation of money is fully compensated, it is known as full DA neutralization. The formula for full DA neutralization is: (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. By multiplying the AICPI of 2001 by 4.63, we obtain the AICPI of 1982, and by multiplying the AICPI of 1982 by 4.93, we get the AICPI of 1960. The base for DA calculation is the AICPI of 1960.
In India, there are mainly two wage settlement terms in existence: Wage Settlements of 1.1.1997 and 1.1.2007. The base points for these settlements are 1708 and 2884, respectively.
I will provide an example of calculating the AICPI for July '10. This involves averaging the indices of the previous March, April, and May, which are recorded as 170, 170, and 172 (Base year 2001). After calculations, the average is determined to be 3895.
For the 1.1.97 scale, the DA percentage is calculated based on the total points of 3895 and the base points of 1708, resulting in a percentage of 128.0. Similarly, for the 1.1.2007 scale, the percentage is calculated using total points of 3895 and base points of 2884, resulting in a percentage of 35.1.
I will insert an Excel sheet for Industrial Dearness Allowance (IDA) calculation effective from 1.10.2008. The results will be highlighted in yellow, while red is used for static information.
With regards,
ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Limited, PALAKKAD - 678 623,
KERALA, INDIA.
+91 9447 467 667
AICPI (base 2001) can be obtained from the following site: Labour Statistics Page 2.
From India, Bangalore
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Dear Manikandan,
The update provided by Abbas is quite exhaustive and informative for you. If you are working in an industry in Tamil Nadu and require monthly updates on DA particulars and various other information, you can subscribe to "UZHAIPAVAR ULAGAM," available at the Labour Office complex in Teynampet, Chennai.
M.V. KANNAN
From India, Madras
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The update provided by Abbas is quite exhaustive and informative for you. If you are working in an industry in Tamil Nadu and require monthly updates on DA particulars and various other information, you can subscribe to "UZHAIPAVAR ULAGAM," available at the Labour Office complex in Teynampet, Chennai.
M.V. KANNAN
From India, Madras
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