Friday, April 4, 2008

Clarification on DA rates, Kameswara rao

At our department, the values assumed are 3,6,10, and 13 based on multiplying the earlier rates by 0.6 as a means of scaling down to the new set up keeping in mind the addition of 40% of old basic pay. This being most expectable compared to other rumours, still is fallacious and not fully correct. In fact, the pay commission report (I have the full one with annex) does not give out the new percentages at all; it has left the job to the government to chalk it out based on the modified year namely, 2001 in order to achieve a full neutralisation. So, all talks are based on extrapolation, guesswork etc.
Now, let me introduce my expectation of the new values, using my sense of interpretation -
If B was one's basic pay, 0.5 B would have been DP; The old %age was based on this.
The 6th pc took back the merger of pay for fixation purposes. Thus new basic pay >= 1.74 B
The grade pay of 0.4 Bmax was given which is >= 0.4 B. The new total pay is then (1.74+0.4) B or more. Thus one should get a scaling down factor for DA as 1.5 B / 2.14 B = 1.5 / 2.14 = 0.7.
Then with the old DA rates of (29-24), (35-24), (41-24) and (47-24) i.e. 5,11,17 and 23, the new rates of DA (after multiplying by 0.7) should rationally be 3.5, 7.7, 11.9 and 16.1. Truncating them to lower integer(!), it becomes 3,7,11 and 16. Please remember this and let me know how correct the actual order would give in future!
Besides, the actual we would get (barring extra allowances) (1.74+0.4) / (1.5x1.24) = 1.16 times the old emoluments i.e. just a 16% approximately.

Bye

srini

1 comment:

Rao said...

The reference base for calculation of DA w.e.f. 01.01.2006 will be the 12 monthly average index of 536 as per AICPI(IW), 1982 series. This when converted to 2001 series using the linking factor 4.63 works out to 116".
Based on this errata, the calculation of DA w.e.f. 01.01.2006 will be as under:
12 monthly average of AICPI (IW) as on 01.07.2006 = 119
12 monthly average of AICPI (IW) as on 01.01.2007 = 123
12 monthly average of AICPI (IW) as on 01.07.2007 = 127
12 monthly average of AICPI (IW) as on 01.01.2008 = 131
DA as on 01.01.2006 = NIL
DA as on 01.07.2006 = [119 -116] = 3 X 100/116 = 2.58 = 2%
DA as on 01.01.2007 = [123 -116] = 7 X 100/116 = 6.03 = 6%
DA as on 01.07.2007 = [127 -116] =11 X 100/116 = 9.48 = 9%
DA as on 01.01.2008 = [131 -116] =15 X 100/116 = 12.93 =12%