Shiva Gopal Mishra
Secretary
Ph:23382286
National council (Staff Side)
Joint Consulative Machinery for Central Government Employees
13-C, Ferozshah Road, New Delhi-110001
E-Mail : nc.jcm.np@gmail.com
No.NC/JCM/2016
Dated: September 6, 2016
The Secretary(Expenditure),
Ministry of Finance,
(Government of India),
North Block, New Delhi-110 001
Dear Sir,
Sub: Future computation of Dearness Allowance and adoption base index figure to Revised Minimum Wage – Regarding
The revised pay structure, as recommended by the 7th CPC, was given
effect as on 01.01.2016 as per the Government’s Notification. The
Dearness Allowance, which was computed at 125% ( i.e 125.75 fraction of
0.75 being ignored), got merged with Pay as on that date. The 7th CPC
has not indicated as to what base figure of AICPI(IW) the Revised Wages
will relate to hereafter wards. As you are aware, the actual DA that was
due as on 01.01.2016 was 125.75. It is only due to the practice of
ignoring fraction; the DA was determined at 125%. No doubt, the said
practice had not been impacting very much except for the postponement of
the benefit by six months. It is, therefore, necessary that, Revised
Wages are related to a base index figure equivalent to actual Dearness
Allowance percentage of 125 that stands merged as on 01.01.2016. This is
more so due to the fact that there is no possibility of the ignored
fraction of 0.75 being reckoned for any computation in future.
We, therefore, request that, 12 monthly average, which stood at 261.33
as on 31.12.2015, may be taken at 260.46, which would provide the exact
percentage of DA at 125. The future percentage increase in DA in other
words may be computed with the base figure of 260.46. The next
instalment of DA, which has become due as on 1.07.2016 if computed on
the above basis of 260.46, shall work out to 3.28%. On ignoring the
faction, the DA with effect from 01.07.2016 shall be 3%. We, request you
to kindly take the above into account and issue orders for grant of 3%
DA w.e.f. 01.07.2016.
Comradely yours,
sd/-
(Shiva Gopal Mishra)
Secretary (staff side)
NC/JCM & Convener
Source: www.ncjcmstaffside.com
