AICPIN of November 2023 and impact on January 2024 D.A for central employees

The All-India CPI-IW for November, 2023 increased by 0.7 points and stood at 139.1 (one hundred thirty nine point one). On 1-month percentage change, it increased by 0.51 per cent with respect to previous month whereas it remained stationary between corresponding months a year ago.

The DA for Central Government Employees was earlier calculated based on the consumer price index with the base year 2001. The Central Government replaced it with a new consumer price index with the base year 2016 to calculate the DA from September 2020.

Based on the current calculation, expected D.A. from January stands to 49.68% with the release of AICPIN data. One more month's data is awaited, i,e. December 2023 which will be made available in the last day of January 2024.

If the current trend continues, it can be predicted that central D.A. will reach 50% from January 2024 and in addition to 4% increase in Dearness Allowance there will be hefty hike in HRA also.

Punjab and several other states increases DA

 Punjab Hikes DA by 4%

Punjab Chief Minister Bhagwant Mann on Monday announced a 4 per cent hike in dearness allowance of government employees with effect from the ongoing month. After the hike, the DA will increase to 38 per cent, Punjab State Ministerial Services Union (PSMSU) President Amrik Singh said. A decision in this regard was taken following a meeting with the representatives of the PSMSU here. During the meeting, Mann discussed various demands of the employees.

“Had a meeting with the representatives of Punjab State Ministerial Service Union today and discussed their issues in detail… Sharing the good news that we are going to give a new year gift to the employees… DA is increased by 4% which will be effective from 1st December 2023,” Mann said in a post on X.

He further said the CM assured that the remaining 8 per cent DA will also be given. The employees had been demanding implementation of the old pension scheme, release of pending 12 per cent DA and regularisation of contractual employees.

DA Hiked By Jammu and Kashmir Govt

The Jammu and Kashmir Government last month hiked the dearness allowance for its employees and said the revised DA rates will come into effect from July 1, 2023.

“In continuation to the Government Order No. 93-F of 2023 dated 04.05.2023, it is hereby ordered that Government employees working in regular pay scale under 7th Pay Commission recommendations shall be paid Dearness Allowance as; Existing Rate of DA per month 42% of Basic Pay to 46% of Revised Rate of DA per month with effect from 01.07.2023”, the notification from the J&K government stated.

The order further reads that the term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix as per 7th Pay Commission recommendations but does not include any other type of pay like special pay etc.

Arunachal Hikes DA by 4%

Recently, the Arunachal Pradesh government hiked Dearness Allowance (DA) and Dearness Relief (DR) by 4% for state government employees and pensioners. The announcement was made by Chief Minister Pema Khandu on X.

Chandigarh Hikes DA by 4%

Bringing festive cheers to the employees, the Chandigarh UT administration increased the dearness allowance (DA) for government and Chandigarh administration employees by 4% during Diwali. With the latest hike, the DA will be increased from 42% to 46%, which will benefit around 20,000 employees.

Karnataka Hikes DA by 3.75%

In the similar manner, the Karnataka government also announced a 3.75 per cent hike in the Dearness Allowance (DA) for state government employees. The hike is also included pensioners. The state government said it was revising the dearness allowance from the existing 35 per cent to 38.75 per cent. The Karnataka government also announced that the lecturers on the UGC/AICTE/ICAR scale and the judicial officers will get a hike of four per cent in their DA.

Tamil Nadu Hike DA by 4%

During the Diwali season, the Tamil Nadu government announced DA hike by 4 per cent this time. On Wednesday, the Tamil Nadu government announced a 4% increase in DA (Dearness Allowance) for State government employees, teachers and pensioners with retrospective effect from July 1 this year.

Assam Hikes DA by 4%

The Assam government last week announced hike in Dearness Allowance (DA) for the state government employees by 4%, and with that, the total DA for them has been increased to 46%. The latest hike will be effective from from December 1.

Uttar Pradesh Hikes DA by 4%

The Uttar Pradesh government announced a 4% hike in the dearness allowance (DA) for the state government employees and pensioners as a Diwali gift. With this, the DA was increased from 42 to 46%, the chief minister’s office said in a statement.

With inputs from india.com

Bank Bipartite : MOU signed with 17 % increase

IBA and Bank Unions agreed on 12th Bipartite agreement and signed MOU. As per the MOU signed, bank employees will be getting  17% increase in salary.

"The final agreement is expected to be signed within two months, although the cut-off period is 180 days," said Rupam Roy, the General Secretary of All India Bank Officers’ Confederation (AIBOC)."

"The new pay scales will be constructed after merging Dearness Allowance corresponding to 8088 points (average Index point as applicable for the Quarter of July, August, and September 2021) to the basic pay as of 31.10.2022, and adding thereon a loading of 3 percent, amounting to Rs 1795 crore," the MOU added.

On additional loading of 3 percent after the merger of DA, Roy said that it would lead to improvement in pension for all pensioners from 1986 including retirees under the proposed 12th bipartite settlement.

It is also informed that IBA agreed on 5 days' week and the proposal will be sent for Govt. nod.

"No plan to form 8th pay commission but report on NPS soon " - Finance Secretary

 The government has no plans to set up the eighth Pay Commission for some 5.4 million central government employees and pensioners ahead of the national election next year, Finance Secretary TV Somanathan has said. 

"There is nothing in the offing regarding setting up the 8th Pay Commission. It's not due at present," Mr Somanathan said on Thursday.

In the past, in the run-up to elections, governments have used the establishing or implementation of the Pay Commission as an effective tool to win over central government employees, armed forces personnel and family pensioners. The 7th Pay Commission was set up by the Congress-led UPA government in September 2013, months before state and general elections.

The BJP, however, has steered clear of such a move, instead focusing on a review of a new pension scheme that has become a point of contention for new state and central government employees.

Under the current scheme, employees contribute 10 per cent of their basic salary, while the government pays 14%. It has become politically contentious, with several opposition-ruled states switching to the old pension scheme that guarantees pensioners 50 per cent of their last drawn salary monthly, without any employee contribution.

The government set up a committee led by the Finance Secretary to review the system.

"We have completed consultations with all concerned and our report should be submitted soon," Mr Somanathan said.

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The government may bring about changes to ensure employees get at least 40 to 45 per cent of their last salary.

Source : NDTV

Consumer Price Index for Industrial Workers (2016=100) - October, 2023

 The All-India CPI-IW for October,2023 increased by 0.9 points and stood at 138.4 (one hundred thirty eight point four). On l-month percentage change, it increased by 0.65 per cent with respect to previous month compared to increase of 0.91 per cent recorded between corresponding months a year ago.

West Bengal CM terms DA as an "option"

 

"DA is not mandatory, it's just an option," she said, adding that her government has given the DA as per the pay commission's fresh directive, and for that purpose, it has spent over Rs 2 lakh and 52 thousand crore in the last two years.

In the backdrop of the constant demand of state government employees to raise the Dearness Allowance (DA) and bring it at par with their central counterparts, West Bengal Chief Minister Mamata Banerjee on November 29 said that DA is not mandatory, but an option.

Speaking at the Assembly, Banerjee in an apparent reference to agitating employees of the state government reminded them about the extra annual leaves as well as her government allowing them to go abroad. "DA is not mandatory, it's just an option," she said, adding that her government has given the DA as per the pay commission's fresh directive, and for that purpose, it has spent over Rs 2 lakh and 52 thousand crore in the last two years.

"Central government employees work under the central structure while the state government employees are under the state structure. If anyone wants, they can join the central government service. The Centre gives fewer holidays but our government gives holidays for all occasions," she said. "They get only 3 to 4 extra days off in a year, but here we have 40 days. You have to add value for that. This government is the only one who has given them the opportunity to go abroad," she said.

State government employees have been demonstrating for several months demanding to raise their DA and bring it to par with the central government employees. They are alleging that the one provided by the state has a much lower rate than that of the central government employees.

Source Moneycontrol/PTI

Salary hike, 5-day work week for PSB employees by mid-December

 Employees at public sector banks (PSBs) may see a 15-20 per cent hike in salaries and implementation of a five-day work week by mid-December as the 12th bipartite settlement talks between bank unions and associations and the Indian Banks' Association (IBA) have entered final stages, reported the Financial Express (FE) citing sources.

"This is the first time in the history of negotiations that the offer [for wage hike] is starting with 15 per cent. It [wage hike] will likely be between 15 per cent and 20 per cent," IBA sources told FE. 

The announcement of the five-day work week will be made either concurrently with or immediately following the pay raise declaration by the Centra or the IBA, they said.

The current wage agreement for PSB employees expired on November 1, 2022. Since then, the IBA and the unions representing bank employees have been negotiating a new wage agreement.

A source in the finance ministry told FE that the wage revision and change in work days would also apply to regional rural banks.

In July 2020, around 850,000 bank employees got a 15 per cent increase in their salary packages, with the IBA and the United Forum of Bank Unions signing a memorandum of understanding (MoU) to settle the three-year-long contentious issue of wage revision.

Another source said that the IBA and the bank unions will shortly hold a final meeting where the two parties will sign a MoU, which will then be handed to the finance ministry for final approval.

The implementation of the five-day workweek will lead to branches remaining closed on weekends. Employees may be asked to work for extra hours during the week to compensate for lost working hours, a source was quoted as saying by FE.

"Business hours will start early on weekdays and close 30-45 minutes late than the current working hours," sources said. Customers who want to withdraw or transfer cash can do so through automated teller machines, with the only challenge being deposit of cheques," he said, adding, "Collection of cheques will be affected for these two days.".

While employees at insurance firms, state governments and central government have a five-day work week, providing the same option to bankers is a move in the right direction, sources said.

Source : Business Standard.

Bihar increases D.A. - at par with Central Govt.

 The Bihar government on Wednesday approved a 4 per cent increase in dearness allowance (DA) for state employees and dearness relief (DR) for pensioners. Chief minister Nitish Kumar made this decision during a cabinet meeting.

As per news agency PTI, employees in the state, under the 7th Pay Commission, currently receive a 42 per cent DA, that has been increased to 46 per cent.

The DA hike is effective from July 1, 2023, enabling employees to receive arrears for the period between July and October. Around 4.5 lakh Bihar state government employees will benefit from this decision, alongside about six lakh pensioners.

The increased DA will reflect in the December salaries, as per Live Hindustan, and employees will also receive arrears for the four-month period.

According to a Live Mint report, several states and union territories, including Assam, Arunachal Pradesh, Karnataka, Chandigarh, Uttar Pradesh, and Tamil Nadu, have raised DA and DR during the festive season of Dussehra and Diwali.

Whether D.A for Central employees will reach 50% on 1st January 2024 ?

After the release of another installment of D.A. from 1st July 2023, speculation and calculation started for the possible increase from 1st January next year. This time it is of immense importance as if D.A. touches 50% mark, HRA of Govt. employees will increase by another 3% in addition.

The All-India CPI-IW for September 2023 decreased by 1.7 points and stood at 137.5 (one hundred thirty-seven point five), as per the press release by the Labour Bureau on 31st October 2023. Expected DA/DR from January 2024 is accounted for in the 3rd step with this release. This decline in the CPI-IW Index still results in a 4% increase in DA/DR from January 2024 for Central Government Employees and Pensioners, reaching 50% in the 7th CPC DA/DR. The CPI-IW index in the coming months will confirm the exact figure of DA/DR for January 2024.

As per the statistics available, even if the index stands at the current level of 138.5, possible increase of D.A. will be 50.36% which will result a 4% hike.

For final calculation we will have to wait for release of CPI-IW number of October, November and December 2023.

Bank Bipartite : IBA increases offer

 As per update received from UFBU (unconfirmed), "Today (09/11/2023) there was daylong negotiations with IBA. IBA improved their offer to 16%  but this could not be agreed by us we requested IBA to improve their offer.We also discussed about implementation of 5 day banking and improvement in pension for past retirees. We have signed the minutes on option to resignees to join pension scheme. Circular follows"

Assam, Chhattisgarh, Chandigarh, Tamilnadu increases Dearness Allowance

 Wave of happiness among 5 lakh employees of Assam

Like the Centre, the Himanta Biswa Sarma government of Assam also increased the dearness allowance by 4 percent. There are about 5 lakh government employees in Assam. Along with them, retired employees will also benefit. The total DA in Assam has now reached 46 percent. The Chief Minister posted on X (formerly Twitter) that as a Diwali gift, the Cabinet has approved 4 percent Dearness Allowance (DA) for state government employees.

After Rajasthan, Chhattisgarh sought approval from the Election Commission

Chhattisgarh Chief Minister Bhupesh Baghel said that state employees will be given dearness allowance equal to that of the Centre. Chhattisgarh government has sought permission from the Election Commission to give dearness allowance. Earlier, the Rajasthan government had prepared a proposal during the assembly elections and sent it to the Election Commission. After getting the permission, DA of employees and pensioners of Rajasthan was increased. The dearness allowance of employees was increased twice this year by the Chhattisgarh government.

Chandigarh and Tamil Nadu also gave gifts

Tamil Nadu government and Chandigarh administration have also announced to give the benefit of 4 percent DA increase to their employees. According to the Tamil Nadu government, this increase will be implemented from July 1 and will benefit 16 lakh employees. This will put a burden of more than Rs 2500 crore on the government exchequer.

Delhi announces bonus for employees

 The government will incur an expenditure of ₹58 crore for granting the bonus

Chief Minister Arvind Kejriwal on Monday announced a ₹7,000 bonus for Group B non-gazetted and Group C employees of the Delhi government for Deepavali and said it will benefit about 80,000 employees.

This will double the joy in our employees’ homes during the festive season. As a government, we have always made efforts to improve the lives of our employees and this effort will continue in the future as well,” Mr. Kejriwal said.

The government will incur an expenditure of ₹58 crore for granting the bonus.

Leader of the Opposition in the Delhi Assembly Ramvir Singh Bidhuri demanded that the Delhi government also pay an increased 4% Dearness Allowance (DA) to its employees. He said the Chief Minister should announce and give an increased DA before the festival.

Uttar Pradesh announces 4% D.A., Bonus

 Lucknow, Nov 6 (PTI) Uttar Pradesh Chief Minister Yogi Adityanath on Monday announced dearness allowance (DA) at the rate of 46 per cent of the basic salary to employees and 30 days' emoluments with a maximum limit of Rs 7,000 to all non-gazetted employees.

"Dearness allowance at the rate of 46 per cent of the basic salary will be provided to all the state employees, aided educational and technical educational institutions, urban bodies, UGC employees, work-charged employees and pensioners who are contributing to the progress of Uttar Pradesh," Adityanth said in a post on X.

"Similarly, it has been decided to provide bonus equal to 30 days' emoluments (maximum limit Rs 7,000) to all state employees (non-gazetted)/work-charged employees, teachers, non-teaching staff and daily wage workers," he added in the post.

Jharkhand announces D.A. at par with Central Govt. employees

 In a pre-Diwali gesture, the Hemant Soren-led government in Jharkhand has bestowed a substantial gift upon its employees and pensioners. The government has increased the dearness allowance (DA) by 4 percent for state employees, effectively bringing it in line with the DA received by central government employees. This decision was made during a recent Cabinet meeting chaired by Chief Minister Hemant Soren, and the increased DA will be retroactive to July 1, 2023. State government employees will now enjoy a 46 percent dearness allowance, ensuring their compensation aligns with that of their central government counterparts.

The Cabinet meeting also approved 23 other proposals, including the ‘Mukhyamantri Ujjwal Jharkhand Yojana,’ a new scheme aimed at providing electricity to homes in rural and urban areas where it is not currently available. An allocation of Rs 1,485 crore has been earmarked for this initiative.

AICPIN : September 2023

 The All-India CPI-IW for September, 2023 decreased by 1.7 points and stood at 137.5 (one hundred thirty seven point five). On 1-month percentage change, it decreased by 1.22 per cent with respect to previous month compared to increase of 0.84 per cent recorded between corresponding months a year ago.

Rajasthan increases D.A. for employees, pensioners

 After the Central Government increased the dearness allowance of 49 lakh employees recently, the Rajasthan government has given great news to the employees. The Ashok Gehlot government of the state has increased DA by 4 percent. After this, the existing DA of 42 percent has increased to 46 percent. The special thing is that the Election Commission has also approved the proposal of 4% increase in dearness allowance sent by the government for the government employees of Rajasthan.

More than 8 lakh employees of the state as well as 4 lakh pensioners will benefit from the decision taken by the government. If the basic salary of an employee is Rs 10000 and he is getting dearness allowance of Rs 4200, then now it will increase to Rs 4600. Actually, voting for the assembly elections is to be held in Rajasthan on 25th November. In such a situation, if the government had announced DA without approval from the Election Commission, it would have been a violation of the rules.

In the information given by the state government, it was said that the benefit of increased DA will be given to the employees from July 1. Employees can get the benefit of increased DA in their October salary. Apart from this, it is also expected that the government will also pay the three months’ arrears along with this. Earlier, an announcement was made by the Central and Yogi governments of UP to increase the DA of the employees. Yogi government has also increased DA from 42 percent to 46 percent. More than 65 lakh pensioners will also get the benefit of DA increased by the Centre.

Karnataka to implement new pay scale in November, scrap NPS

 Karnataka employees can get a big gift in the month of November. Indications for this have started coming from the state government. Actually, the state government had constituted the panel to implement the recommendations of the Seventh Pay Commission in Karnataka. It is expected that the panel can submit its recommendations to the state government in the next month i.e. November. Meanwhile, State Home Minister G Parameshwara said that the state government will take an appropriate decision if necessary. The panel was asked to submit recommendations in the month of November.

State CM Siddaramaiah has already assured to take a decision to implement the commission’s report. He had said that government employees need not worry. It will be implemented.

NPS will end

Karnataka Home Minister G Parameshwara said that the government will scrap the New Pension Scheme (NPS) and implement the Old Pension Scheme (OPS). Congress had promised to implement the old pension in the manifesto for the assembly elections held in the month of May. A committee has been formed on this. The state government will take a decision based on the report. He said that the government will soon launch Karnataka Arogya Sanjeevini scheme to provide free treatment to the state government employees and their families. The state government will fill 2.5 lakh vacant posts in the next 5 years.

Banks offer 15% wage hike, 5-day work week

State-run and old private generation banks are discussing an average 15% wage hike for employees, while also rolling out a five-day work week soon.

On Thursday, Indian Banks' Association has proposed a 15% increase, but the unions are said to be demanding a higher increase, along with other changes. Separately, some of the banks, such as PNB, have started making higher provisions for the wage increase. Instead of budgeting for a 10% increase, in the September quarter, the Delhi-headquartered lender has set aside funds for a 15% rise.

Employees and unions are arguing that banks have seen a good increase in profits in recent years and given the efforts that employees have put in getting the lenders back on track, apart from working during Covid and pushing government's schemes, they are entitled to better compensation. The negotiations are being closely monitored by the finance ministry.

With the general elections due next year, the expectation is that the wage settlement will be finalised before that as bank employees are a sizeable constituency. In 2020, the last wage settlement concluded after three years of negotiation.

Haryana announced 4% D.A. for state employees wef 01.07.2023

 Chief Minister Manohar Lal Khattar said the state employees will get the hiked DA from July 1, 2023, and nearly 3.5 lakh employees in Haryana will benefit from the move.

Going in line with the Central government, Haryana Chief Minister Manohar Lal Khattar on Thursday announced a 4 per cent hike in the Dearness Allowance (DA) for state government employees. The announcement from the Haryana government comes after the Centre increased the DA for government employees from 42 per cent to 46 per cent.

The chief minister said the state government employees will get the hiked DA from July 1, 2023, and nearly 3.5 lakh employees in Haryana will benefit from the move of the state government.

Dearness Relief for Central Pensioners wef 01.07.2023 : Order issued

 Click here to download DR Order