DA on January 2016 : In case of total DA increased by 126% or more?
Is there any chances to reconsider in the multiplication factor of 2.57, when total DA increased by 126% or more on 1.1.2016.
After releasing the AICPIN yesterday for the month of November 2015, the index is increased one point and stands at 270. In case of next month i.e.,December 2015, perhaps the ACPIN Index increases two or more points, the total DA will also be increased by 7%. Then the total DA will increase to 126%. But the 7th Pay Commission already said in the report that the DA would increase by 6% and the calculation also done by the same. So, is there any possibilities to change the calculation of fitment factor?
The 7th CPC Report says…
The following table shows the real increase given by each CPC/Government over the previously set minimum pay:
“This is 2.57 times the minimum pay of Rs.7,000 fixed by the government while implementing the VI CPC’s recommendations from 01.01.2006. Accordingly, basic pay at any level on 01.01.2016 (pay in the pay band + grade pay) would need to be multiplied by 2.57 to fix the pay of an employee in the new pay structure. Of this multiple, 2.25 provides for merging of basic pay with DA, assumed at 125 percent on 01.01.2016, while the balance is the real increase being recommended by the Commission. The real increase works out to 14.2 percent (2.57÷2.25 = 1.1429).”
The 7th CPC has arrived at a factor of 2.57 for multiplication with the pre-revised pay and pay band to arrive at new Basic Pay. While the pre-revised Pay in the pay band and Grade Pay is to be deemed as 100%, the D.A. as on 1/1/2016 constitute 125% totaling to 225% in other words 2.25 factor. The 7th CPC added 32% hike uniformly to all the employees as fitment benefit to the existing pay and grade pay and raised it to 257% or 2.57 factor.
We could find out the calculation in other method : Current Basic Pay is equal to One Point and add the DA as on 1.1.2016(125%) = 1 + 1.25 = 2.25
Now the real increase works out by the commission is 14.3
Increased percentage : 225 x 14.3 = 32.17 (rounded off to 32)
Fitment Factor is finalised by the commission : 225 + 32 = 257 (2.57)
If the total DA increased to 126% then the calculation will be as follows…
Increased percentage : 226 x 14.3 = 32.31 (rounded off to 32)
Fitment Factor as per calculation : 226 + 32 = 258 (2.58
However, the NC JCM Staff Side and Confederation had strongly objected in the meagre increase of 14% recommended by the 7th CPC. The NJCA Concener said that this is the lowest ever any pay Commission has made. It was the similar recommendation, we would request you to recall, made by the 2nd CPC that triggered a confrontation of an unprecedented nature, leading to a strike action which lasted for five days in the year 1960. In the background of the fact that the 5th and 6th CPC recommendations had resulted in the wage rise of 31% and 54% respectively, the anger, anguish and frustration of the employees are the natural outcome. Unless the minimum wage is re-determined with all consequential benefits, the discontent will not be capable of being addressed effectively.