Clarification on IDA
All India Consumer Price Index for Industrial Workers (AICPI-IW) is communicated By Labour Bureau, with it’s Head Quarters at Shimla. This is announced through a Press Release on the last working day of the month. For example October Index is announced on 27th of November which is being the last working day.
From September , 2020 the base year of the said Index is changed to 2016=100 for announcing AICPI-IW and to get the Index in 2001=100 series, a conversion factor is given as 2.88.
This Index is being followed by Central Government, State Governments, PSUs, Banks, Road Transports etc for granting DA to its employees and Pensioners.
Our IDA rate (which is applicable to all PSUs) is determined based on the increase/decrease in the Three months average of AICPI-IW.
AICPI_IW for September,2020 is 118.1 (originally announced as 118 and now decided to announce with ONE decimal point.)
AICPI-IW for October,2020 is 119.5
If we convert these figures into 2001=100 series September Index will be 340, October Index will be 344.
For announcing IDA admissible from 1st January,2021, we require Index figure of November, which will be announced on 31st December,2020.
However the rates of IDA as effective from 01-10-2020, 01-01-2021 and 01-04-2021 Will be restored prospectively and will be subsumed in the cumulative Revised rate effective from 01-07-2021. No arrears from 01-10-2020 to 30-06-2021 shall be paid as per orders of DPE dated 19th Nov,2020
We will continue to receive IDA @159.9% till June,2021.
Let us wait.
- Courtesy: Com V.V.S. Moorthy, HD