125% DA from Jan 2016 for 7th CPC Fitment Factor is confirmed: AICPIN Dec, 2015 released

  125% Dearness Allowance from January 2016 is confirmed now after releasing of December, 2015 AICPIN, which was already speculated by Seventh Pay Commission and was taken as fitment factor for determination of new pay matrix.

As per Labour Bureau  Press Release the All-India CPI-IW for December, 2015 decreased by 1 point and pegged at 269 (two hundred and sixty nine).  From this decrease the Expected Dearness Allowance from Jan, 2016 is confirm to stand at 125%.  The Dearness Allowance from Jan, 2016 is important factor of pay determination in 7th CPC, which is due to implement with effect from 01.01.2016.  The recommendations of 7th CPC has taken the expected DA @ 125% for the purpose of minimum pay determination and the fitment factor for new pay structure. Now the speculation of this DA by 7th CPC is correct and only minimum wages will be the main factor to increase the Fitment Factor from 2.57, which is main demand of employees. The line of recommendations of 7th CPC regarding Fitment Factor are given below:-

Fitment 

5.1.27 The starting point for the first level of the matrix has been set at Rs.18,000. This corresponds to the starting pay of Rs. 7,000, which is the beginning of PB-1 viz., Rs.5,200 + GP 1800, which prevailed on 01.01.2006, the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.