Dearness Allowance close contact with AICPIN

Dearness Allowance for Central Government Employees as per 6th CPC.

We are all well known that the Dearness allowance calculation is based on All India Consumer Price Index numbers. AICPIN has been published by Labour Bureau in every month,and an attached office of the Ministry of Labour & Employment, has been compiling Consumer Price Index Numbers for Industrial Workers (CPIIW) since its inception in the year 1946.

Earlier the Government of India accepted the recommendation through a scheme called “Cost of Living Index Numbers scheme” in the year 1941.

In 1946, started compiling and publishing an interim series of All India Average Working Class Cost of Living Index Numbers by Labour Bureau.

The Labour Bureau compiled and published centre-wise and all India Consumer Price Index Numbers for Industrial Workers with base year 1960=100 from August, 1968 to September, 1988.

Working Class Family Income & Expenditure Surveys were conducted by the Labour Bureau during the period 1970-71 at 60 centres and during the period 1981-82 at 70 centres belonging to All India and 6 additional centres. On the basis of the results of 1981-82 survey, a new series of centre-wise and all India Consumer Price Index Numbers for Industrial Workers with base year 1982=100 was compiled and published during the period October, 1988 to December, 2005.

The current series of Consumer Price Index Numbers for Industrial Workers with base year 2001=100 had been released with effect from January, 2006 index.

This series is based on the Working Class Family Income & Expenditure Surveys conducted during the period 1999-2000 at 78 important industrial centres throughout the country.

These Consumer Price Indices measure the changes in the level of retail prices of a fixed set of goods and services consumed by an average working class family in a given area, over time with reference to a base year.

These indices are utilised for regulation of wages and dearness allowance of millions of workers and employees in the country. These indices serve as important indicators of retail price movement in the country.

These are all the base information’s about AICPIN for calculating dearness allowance to Central Government employees. We just go through the enhanced percentage of dearness allowance month by month in the below table.

Month / Year	B.Y. 2001=100	Total of 12 Months	12 Months Average	% Increase over 115.763	App. DA	DA %	Enhanced DA %	AICPIN Low	AICPIN High	AICPIN Diff.	DA Increasing %
Jan-06						0
Jun-06	123	721	60.08			2		119	123	4
Dec-06	127	1475	122.92	7.16	6.18	6	4%	123	127	4	200%
Jun-07	130	1523	126.92	11.16	9.64	9	3%	127	130	3	50%
Dec-07	134	1569	130.75	14.99	12.95	12	3%	130	134	4	33%
Jun-08	140	1623	135.25	19.49	16.84	16	4%	134	140	6	33%
Dec-08	147	1700	141.67	25.91	22.38	22	6%	140	147	7	38%
Jun-09	153	1775	147.92	32.16	27.78	27	5%	147	153	6	23%
Dec-09	169	1885	157.08	41.32	35.70	35	8%	153	169	16	30%
Jun-10	174	2015	167.92	52.16	45.05	45	10%	169	174	5	29%
Dec-10	185	2111	175.92	60.16	51.97	51	6%	185	189	4	13%
Jun-11	189	2203	183.58	67.82	58.59	58(Expected)	7%	185	189	4	14%

Source: www.cgstaffnews.com