DEARNESS ALLOW FORMULA IN BANKS ALL INDIA CONSUMER PRICE INDEX FROM 1970 ALL INDIA BANK EMPLOYEES ASSOCIATION

Transcription

1 DEARNESS ALLOW OWANCE FORMULA IN BANKS DA RATES & ALL INDIA CONSUMER PRICE INDEX FROM 1970 ALL INDIA BANK EMPLOYEES ASSOCIATION 1

2 ALL INDIA BANK EMPLOYEES ASSOCIATION Dear Comrades, Dearness Allowance is an important ingredient of the wages of the Bank employees. D.A. is paid based on a formula according to the variations in Consumer Price Index. The D.A. formula in the Banking Industry is one of the best formula available in our country for compensation against price rise. Right from Sastri Award, our D.A. formula has been improved over a period of time. This handbook contains the D.A. formula as applicable to the bank employees and pensioners, D.A. rates from 6th BPS as well as the All India Consumer Price Index figures from 1970 to While fighting to retain this D.A. formula is very important, it is more important to fight against price rise and the policies responsible for price rise. 3

3 Contents S. No. PAGE No. 1. DEARNESS ALLOWANCE IN BANKS 7 2. HOW TO CONVERT 2001 INDEX TO 1960 INDEX 8 3. D.A. INCREASE NOV & NOV COMPARISON 9 4. D.A. SCHEME SASTRY AWARD TO 9th BPS IMPROVEMENT IN DA PER SLAB 1st to 9th BPS CLERKS IMPROVEMENT IN DA 1st to 9th BPS SUBSTAFF DA RATES UNDER 6th BPS DA RATES UNDER 7th BPS DA RATES UNDER 8th BPS DA RATES UNDER 9th BPS 2007 TILL NOW DA SLABS INCREASE IN LAST 7 YEARS 2005 TO NOV DA FOR PENSIONERS FROM TO DA FOR PENSIONERS FROM TO DA FOR PENSIONERS FROM TO DA FOR PENSIONERS FROM TO DA FOR PENSIONERS FROM DA FOR PENSIONERS FROM D.A. ON EX-GRATIA PENSION PAYABLE TO PRE-1986 RETIREES READY RECKONER FOR D.A. ON PENSION FROM DA - GOVT. EMPLOYEES & BANK EMPLOYEES CONSUMER PRICE INDEX : Jan.1970 TO Oct

4 DEARNESS ALLOWANCE Dearness Allowance/Dearness Pay came into being during the World War II as a compensation for rise in prices because prices went up sky-high and commodities became dearer and costly. In 1940, there was the famous Mahagai strike for 6 months by the textile workers in Bombay (now Mumbai) led by Com. S.A. Dange. Mahatma Gandhi also demanded Dearness money for the textile workers in Ahmedabad. Slowly DA came to be extended to other workers also. DA is there only in the Asian countries and not in the western countries. DA is related to cost of living and to rise in prices. Rise in prices is measured through the Index. The Government of India, through its Bureau in Shimla, collects the prices of different commodities in different centres and publishes various types of Price Index according to consumption pattern, etc. like Consumer Price Index, Wholesale Price Index, Price Index for Industrial Workers, middle class, rural people, urban centres, etc. Price Index so far: 1939 = = = = = = 100 In the Banking sector, for the purpose of calculating DA, the All India Consumer Price Index for Industrial Workers ( 1960=100 ) series is being taken. D.A. FORMULA IN BANKS Under 9th Bipartite Settlement dated , DA is payable on quarterly average of Consumer Price Index and is paid for every rise or fall of 4 Points over 2836 Points of 1960 = 100 Index figures. From 8th Bipartite Settlement, DA is being paid with 100 % of neutralisation as against earlier tapering basis. Now DA is paid on uniform percentage for entire Pay. 7

5 Dearness Allowance - 42 Slabs more from November Month INDEX INDEX Consumer Price Index D.A. Slabs July Average Points New Slabs 510 Aug Last Average Old Slabs 468 Sep Increase/Decrease Increase/Decrease 42 D.A. 0.15% per Slab : 510 Slabs over 2836 Points : % D.A. from Feb Slabs more CPI Month Consumer Price Index D.A. Slabs Oct Average Points New Slabs 535 Nov Last Average Old Slabs 510 Dec Increase Increase 25 D.A. 0.15% per Slab for 535 Slabs over 2836 points: 80.25% HOW TO CONVERT THE INDEX TO 1960 = 100 SERIES The Government is publishing only the Index figures of 2001=100 Series. They do not publish the Index figures of 1960 = 100 services or 1982=100 Series. (2001 = 100) Index figure X 4.63 will get us (1982 = 100) Index figure. (1982 = 100) Index figure X 4.93 will get us (1960 = 100) Index figures. Therefore EXAMPLE: (2001 = 100) Index X 4.63 X 4.93 = (1960 = 100) Index figure Sept., 2012 : (2001=100) Series Index : 215 Points (1960=100) Series Index = 215 X 4.63 X 4.93 =

6 COMPARISON OF INCREASE IN DA UNDER 9th BPS SO FAR Substaff DA for Nov DA for Nov Increase 7.20 % % % (48 Slabs) (510 Slabs) (462 Slabs) Stage 1 Basic Pay Rs Stage 20 Basic Pay Rs Stage 27 Basic Pay Rs Daftary Stage 27 Pay Rs Clerk Stage 1 Basic Pay Rs Spl. Assistant Graduate/CAIIB Stage 27 Pay Rs

7 D.A. SCHEME SASTRY AWARD TO 9th BIPARTITE SETTLEMENT Substaff Clerical Rate per Slab Rate per Slab Sastry Award 33 1/3% 33 1/3% Min. 35 Max.70 Min. 35 Max. 70 Desai Award 4.00% 3.00% 1 st & 2 nd BPS 4.00% 3.00% (over 100 Points) 3 rd BPS (over 200 Points) 2.00% 1.58% (Maximum 15.80) 4 th BPS (over 332 Points) 1.20% 1.00% (Maximum 15.80) 5 th BPS (over 600 Points) 0.67% For Pay Upto Rs.2500 = 0.67% + For Balance = th BPS (over 1148 Points) 0.35% For Pay Upto Rs.4800 = 0.35% + For Balance = 0.55% 7 th BPS (over 1684 Points) 0.24% For Pay Upto Rs.7100 = 0.24% + For Pay Upto Rs = 0.20% + For Balance = 0.12% 8 th BPS (over 2288 Points) 0.18% From to For Pay Upto Rs.9650: 0.18% per Slab+ For Pay Upto Rs.15350:0.15% per Slab+ For Pay Upto Rs.16350:0.09% per Slab+ For Balance Pay : 0.04% per Slab From For entire Pay : 0.18% 9 th BPS (over 2836 Points) 0.15% For entire Pay : 0.15% 10

8 IMPROVEMENT IN DA PER SLAB - CLERKS AT MINIMUM OF PAY AT MAXIMUM OF PAY 1 ST BPS 154 x 3% = x 3% = ND BPS 170 x 3% = x 3% = RD BPS 325 x 1.58% = x 1.58% = Max. 4 TH BPS 520 x 1% = x 1% = Max x 1% = TH BPS 900 x 0.67% = x 0.67% = x 0.67% = TH BPS 1750 x 0.35% = x 0.35% & 0.29% = TH BPS 3020 x 0.24% = x 0.24, 0.20 & 0.12% = x 0.24, 0.20 & 0.12% = TH BPS 4410 x 0.18% = x 0.18% = x 0.18% = TH BPS 7200 x 0.15 % = x 0.15 % = x 0.15 % = DA for a senior Special Assistant who is a Graduate/CAIIB : Rs

9 IMPROVEMENT IN DA PER SLAB - SUBSTAFF AT MINIMUM OF PAY AT MAXIMUM OF PAY 1 ST BPS 92 x 4% = x 4% = ND BPS 116 x 4% = x 4% = RD BPS 245 x 2% = x 2% = TH BPS 430 x 1.2% = x 1.2% = x 1.2% = TH BPS 815 x 0.67% = x 0.67% = x 0.67% = TH BPS 1600 x 0.35% = x 0.35% = x 0.35% = TH BPS 2750 x 0.24% = x 0.24% = x 0.24% = TH BPS 4060 x 0.18% = x 0.18% = x 0.18% = TH BPS 5850 x 0.15% = x 0.15 % = x 0.15% = DA per slab for a senior Substaff with all stagnation increments Daftary : Rs Driver : Rs

10 QUARTERLY DEARNESS ALLOWANCE SLABS & PERCENTAGES FROM TO th BIPARTITE SETTLEMENT Quarter from Average Index Slab over (A) % (B) % 1148 Points Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug (A) : For Pay upto Rs : 0.35 % per Slab plus (B) : For Balance Pay : 0.29 % per Slab 13

11 QUARTERLY DEARNESS ALLOWANCE SLABS & PERCENTAGES FROM TO Quarter from 7th BIPARTITE SETTLEMENT Average Slab over (A) % (B) % (C) % Index 1148 Points Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug Nov Feb May Aug (A) : For Pay upto Rs (B) : From 7101 to (C) : For Balance : 0.24 % per Slab plus : 0.20 % per Slab plus : 0.12 % per Slab 14

12 QUARTERLY DEARNESS ALLOWANCE SLABS & PERCENTAGES FROM TO Quarter from 8th BIPARTITE SETTLEMENT Average Slab over Index 1148 Points (A)% (B)% (C)% (D)% Nov Feb May Aug Nov Feb May Aug Nov (A) : For Pay upto Rs (B) : From 9651 to (C) : From to (D) : For Balance : 0.04 % : 0.18 % per Slab plus : 0.15 % per Slab plus : 0.09 % per Slab plus FROM % DA NEUTRALISATION 0.18 % per Slab for entire Pay Quarter from Average Index Slab over 2288 Points % Feb % May % Aug % Nov % Feb % May % Aug % Nov % Feb % May % Aug % 15

13 QUARTERLY DEARNESS ALLOWANCE SLABS & PERCENTAGES FROM th BIPARTITE SETTLEMENT (0.15% per Slab over 2836 Points) Quarter from Average Index Slabs over 2836 Points % Nov % Feb % May % Aug % Nov % Feb % May % Aug % Nov % Feb % May % Aug % Nov % Feb % May % Aug % Nov % Feb % May % Aug % Nov % 16

14 D.A. NO. OF SLABS INCREASED FROM 2005 TO November, 2012 Year Quarter No. of Slabs Increased Per Year 2005 FEB 4 MAY 2 AUG 4 NOV FEB 13 MAY 1 AUG 13 NOV FEB 15 MAY 2 AUG 10 NOV FEB 7 MAY 8 AUG 21 NOV FEB 17 MAY 2 AUG 19 NOV FEB 32 MAY 19 AUG 8 NOV FEB 25 MAY 19 AUG 8 NOV FEB 19 MAY 8 AUG 40 NOV

15 INCREASE IN D.A. SLABS FOR EMPLOYEES IN SERVICE FEB. MAY AUG. NOV. TOTAL

16 INCREASE IN D.A. SLABS FOR RETIRED EMPLOYEES FEB. AUG. TOTAL

17 DEARNESS ALLOWANCE ON PENSION A. PENSIONERS FROM TO / DA OVER 600 POINTS ( 4th & 5th BPS ) For Pension upto Rs. 1250/- For Balance upto Rs. 2000/- For Balance upto Rs. 2130/- For Balance 0.67% per Slab plus 0.55% per Slab plus 0.33% per Slab plus 0.17% per Slab plus B. PENSIONERS FROM / TO DA OVER 1148 POINTS ( 6th BPS ) For Pension upto Rs. 2400/- For Balance upto Rs. 3850/- For Balance upto Rs. 4100/- For Balance 0.35% per Slab plus 0.29% per Slab plus 0.17% per Slab plus 0.09% per Slab plus C. PENSIONERS FROM TO Pension from to DA OVER 1616 POINTS ( 7th BPS ) For Pension upto Rs. 3380/- For Balance upto Rs. 5420/- For Balance upto Rs. 5770/- For Balance 0.25% per Slab plus 0.21% per Slab plus 0.12% per Slab plus 0.06% per Slab plus Pension from DA OVER 1684 POINTS For Pension upto Rs. 3550/- For Balance upto Rs. 5650/- For Balance upto Rs. 6010/- For Balance 0.24% per Slab plus 0.20% per Slab plus 0.12% per Slab plus 0.06% per Slab plus 20

18 D. PENSIONERS FROM From to DA OVER 2288 POINTS ( 8th BPS ) For Pension upto Rs. 4830/- For Balance upto Rs. 7675/- For Balance upto Rs. 8175/- For Balance 0.18% per Slab plus 0.15% per Slab plus 0.09% per Slab plus 0.04% per Slab plus (FROM ) For Entire Pension 0.18% per Slab plus E. PENSIONERS FROM DA OVER 2836 POINTS For Entire Pension 0.15% per Slab plus 21

19 D.A. FOR PENSIONERS FROM FEBRUARY, 2008 AVERAGE 3056 POINTS D.A. for Pensioners 28 Slabs increase Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % 81.09% 42.93% After upto Slabs over 1684 points Upto Above % 68.60% 41.16% 20.58% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % FROM AUGUST, 2008 AVERAGE 3172 POINTS DA for Pensioners 29 Slabs more Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % 86.02% 45.54% After upto Slabs over 1684 points Upto Above % 74.40% 44.64% 22.32% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % 22

20 FROM FEBRUARY, 2009 AVERAGE 3368 POINTS DA For Pensioners 49 Slabs increase Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % 94.35% 49.95% After upto Slabs over 1684 points Upto Above % 84.20% 50.52% 25.26% Retired on or after Slabs over 2288 points On entire Basic pension % Retired on or after Slabs over 2836 points On entire Basic Pension % FROM AUGUST, 2009 AVERAGE 3452 POINTS DA For Pensioners - 21 Slabs increase Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % 97.92% 51.84% After upto Slabs over 1684 points Upto Above % 88.40% 53.04% 26.52% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % 23

21 FROM FEBRUARY, 2010 AVERAGE 3816 POINTS DA For Pensioners 91 Slabs More Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % % 60.03% After upto Slabs over 1684 points Upto Above % % 63.96% 31.98% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % FROM AUGUST, 2010 AVERAGE 3924 POINTS DA For Pensioners 27 Slabs More Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % % 62.46% After upto Slabs over 1684 points Upto Above % % 67.20% 33.60% Retired on or after Slabs over 2288 points For the entire Basic Pension % Retired on or after Slabs over 2836 points For the entire Basic Pension % 24

22 FROM FEBRUARY, 2011 AVERAGE 4168 POINTS DA For Pensioners 27 Slabs More Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % % 67.95% After upto Slabs over 1684 points Upto Above % % 74.52% 37.26% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % FROM AUGUST, 2011 AVERAGE 4276 POINTS Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % % 70.38% After upto Slabs over 1684 points Upto Above % % 77.76% 38.88% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % 25

23 FROM FEBRUARY, 2012 AVERAGE 4516 POINTS Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % % 75.78% After upto Slabs over 1684 points Upto Above % % 84.96% 42.48% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % FROM AUGUST, 2012 AVERAGE 4708 POINTS Retired prior to Slabs over 600 points Upto Above % % % % After upto Slabs over 1148 points Upto Above % % % 80.10% After upto Slabs over 1684 points Upto Above % % 90.72% 45.36% Retired on or after Slabs over 2288 points For the entire Basic Pension Amount % Retired on or after Slabs over 2836 points For the entire Basic Pension Amount % 26

24 D.A. ON EX-GRATIA PENSION PAYABLE TO PRE-1986 RETIREES Those who have retired prior to 1986 after 20 years service are eligible for Ex-gratia Pension of Rs. 300 per month plus DA thereon. DA is payable over 600 Points i.e % per Slab. From Average Index DA Slabs DA Rate % Nov % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % Feb % Aug % 27

25 READY RECKONER FOR D.A. RATES FOR PENSIONERS CHART 1 For workmen retired prior to and officers retired prior to D A over 600 points CHART 2 For workmen retired from upto and for Officers retired from upto D A over 1148 points CHART 3 For those retired from upto D A over 1616 points - from April 1998 to April 2005 CHART 4 For those retired from upto D A over 1684 points - from May, 2005 onwards CHART 5 For those retired from upto D A over 2288 points - from Nov to January, 2005 CHART 6 For those retired from upto D A over 2288 points - from February, 2005 onwards CHART 7 For those retired from D A over 2836 points 28

26 DA Slabs and Rates for Pensioners (%) Workmen Retired prior to Officers Retired prior to D A over 600 points CPI MONTH SLABS Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Basic Pension upto Rs Rs.1251 to Rs.2001 to Above Rs

27 DA Slabs and Rates for Pensioners (%) Workmen Retired on or after upto Officers Retired on or after upto D A over 1148 points CPI MONTH SLABS Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Basic Pension upto Rs Rs.3851 to Rs.2401 to Above Rs

28 DA Slabs and Rates for Pensioners (%) Retired on or after upto D A over 1616 points upto April, 2005 CPI MONTH SLABS Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Upto Pension upto Rs Rs.3381 to Rs.5421 to Above Rs

29 DA Slabs and Rates for Pensioners (%) Retired on or after upto D A over 1684 points from May, 2005 onwards CPI MONTH SLABS Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug From Pension upto Rs Rs to Rs to Above Rs

30 DA Slabs and Rates for Pensioners (%) Retired on or after upto D A over 2288 points upto January, 2005 CPI MONTH SLABS Nov Feb Aug Feb Aug DA Slabs and Rates for Pensioners (%) Retired on or after upto D A over 2288 points from February, Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug % Neutralisation from (0.18% per slab for entire Basic Pension) 0.18 Basic Pension upto Rs Rs.4831 to Rs.7676 to Above Rs.8175 From for the entire Basic Pension

31 DA Slabs and Rates for Pensioners (%) Retired on or after D A over 2836 points CPI MONTH SLABS Nov Feb Aug Feb Aug Feb Aug Feb Aug Feb Aug % Neutralisation from (0.15% per slab for entire Basic Pension) 34

32 COMPARISON BETWEEN GOVT DA AND BANK DA D.A. IN GOVT D.A IN BANKS Govt. DA is paid over Bank DA is paid over 2836 pts. 116 points of 2001 series of 1960 Series i.e pts of 1960 series DA changes in Jan and July i.e. 2 times in an year DA is paid on changes in the average of previous 12 months DA rate is rounded off i.e % is taken as 21 % DA changes in Feb., May, August and Nov. i.e. 4 times in an year DA is paid on changes in the average of previous 3 months DA rate is taken including decimal is taken as % Increase in DA is paid only after approval by the Cabinet Increase in DA is paid automatically when the Index is announced Note : Bank DA is paid at 0.15 % per slab over 2836 points. If it is notionally taken at 2648 pts ( for proper comparison with DA rate of Govt. employees), the rate would be 0.16 % per slab over 2648 pts. 35

33 Govt. DA over Bank DA over Bank DA 2648 pts pts. notionally over 2648 pts. % % % Jan Feb Jan Feb Jan Feb Jan Feb Jan Feb May July Nov., Dec

34 CONSUMER PRICE INDEX ( 1960 = 100) FROM 1970 TO OCTOBER, 2012 MONTH JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC Annual Avg MONTH JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC Annual Avg

35 MONTH JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC Annual Avg MONTH JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC Annual Avg

36 MONTH JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC Annual Avg Month JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC Annual Avg. 39

37 ALARMING PRICE RISE : The total failure of the Government to check inflation and prices of essentials of daily life has made the lives of the Aam Aadmi so miserable. Human distress is increasing and even for the middle class or salaried sections, there is difficulty in making both ends meet. The consumer Price Index for Industrial Workers has crossed 4,500 Points mark in October, 2011 YEAR CONSUMER PRICE INDEX INCREASE IN POINTS IN 10 YEARS IN 10 YEARS IN 10 YEARS IN 10 YEARS IN 10 YEARS Oct Oct INCREASE IN PRICE INDEX FROM 1960 TO 1990 : INCREASE IN PRICE INDEX FROM 2009 TO 2012 : IN 30 YEARS IN 3 YEARS Because of the galloping price rise, there is erosion in the real wages of the workers. Hence fighting to contain price rise has become the most important task of the working class and trade unions. 40