Updated News about AICPIN: The 7th Pay Commission has recommended that there is no change in CPI(IW) BY 2001=100, while determining the percentage of Dearness allowance for Central Government Employees and Pensioners.
7th CPC AICPIN : There is no authentic information about the calculation is being continued to next pay commission, but the method of calculation for Consumer Price Index would be changed and the work is being under process by the Ministry of Labour and Employment.
Consumer Price Index Numbers have been accepted to determine the dearness allowance of a large number of industrial workers and other employees in public and private sector
7th CPC DA Calculation – Important factor of AICPI (IW) BY 2001 continue or not..?
Dearness Allowance is one of the important issues that the Pay Commission deals with. The calculation method that was recommended by the 6th Pay Commission was radically different from the ones suggested by all the previous Pay Commissions. Dearness Allowance, which was increasing by 1 or 2% until the 5th Pay Commission suddenly shot up to the peak of double-digit numbers.
Until the 5th CPC, the Consumer Price Index Number for Industrial Workers 1982 = 100 was used for calculating dearness allowance. From the 6th Pay Commission onwards, CPI (IW) 2001=100 was used for calculating the DA.
There was another crucial change that the 6th CPC made. It recommended that the Reference Base Index be changed from 306.33. As a result, 115.76 became the new Reference Base Index from 01.01.2006 onwards.
Will the 7th CPC introduce a new CPI (IW)? Or will it bring about changes in the Reference Base Index?