CGPA/KL/GL/2016 dated 01-08-2016
To
Shri. Arun Jaitely
Hon’ble Minister of Finance, North Block, New Delhi
Respected Sir,
The purport and intent of this letter
is to invite your kind attention to a perennial injustice being meted out to
the employees and pensioners in computing DA / DR by ignoring the fraction
element in 12 monthly average of cost of Index. A cursory look at this practice
will convince you that employees and pensioners are denied a legitimate claim
by way of neutralization of cost of living index fully. Considerable pecuniary
loss is being sustained by them by following an irrational practice of
computation of DA / DR ignoring the fraction element. This loss is significantly
compounded whenever base year for calculation of DA / DR is changed consequent
on revision of pay by merging DA with pay. This patent injustice is evidenced
in the illustration given below:
Consumer Price Index
Month
|
Base Year 2001=100
|
12 monthly average
|
Increase over 115.76
(Old DA)
|
Increase over 261.42 (New DA)
|
June 2016
|
277
|
269.00
|
132.38
|
2.90
|
DA/DR Calculation with effect from 01-07-2016
OLD (Rs.)
|
NEW (Rs.)
|
DA Computed without
ignoring fraction
|
Loss in DA
|
|
Basic
|
10000
|
25700
|
||
DA
|
700
|
514
|
746
|
232
|
A well laid principle of preventing erosion
of real wages on account of rise in cost of living index is mutilated by
pursuing the extant practice. It is respectfully submitted that in the
computation of I.D.A., which is quarterly, the fraction element of average
index is taken into account which may be adopted in C.D.A. case also. How this
irrationality of ignoring the fraction element of average index has crept in
the determination of C.D.A. is not easily understandable. Any way it can be
affirmed without fear of contradiction that this extant practice deserves to be
done away with. This Association earnestly requests you to kindly issue
necessary orders putting an end to the unjust practice which cause loss in real
wages / pension. Appealing for your benign indulgence in this matter.
Thanking you, yours
faithfully
Copy to: 1. Shri. Shiv Gopal
Mishra, Secretary, Staff Side, JCM, New Delhi
2. Shri. K.K.N.Kutty, Secretary
General, NCCPA, New Delhi
