Claification of DA Neturalisation formula.

[lajpat rai]

Some of my friends are not really aware how the DA per slab is calculated. How the consumer price index figures are converted to slabs and how per slab percentage of amount per slab of da is calculated and what is the meaning of hundred percent da neutralisation. let Lerner people on face book properly make the visitors of this blog under stand the mechanism of DA it's concerns ion from price index to DA slabs and how monetary value per slab is fixed. Clear explanation of each point will be appreciated and welcomed. Lajpat rai thakral

[OM PRAKASH SHARMA]

Dear Shri Lajpat Rai Ji,

Thanks for your message on the crucial subject of 100%  neutralization of DA. The moot question is that Pre-2002 retires are losing about Rs 2500 to Rs. 3500 every month, which is a significant amount. In my view, the need of the hour is to prevail upon IBA to consider releasing 100 % DA neutralization to such retirees, instead of having discussions, how such DA's are computed. All such retirees are concerned over this issue and therefore, we all should write to our union leaders for taking this issue on priority basis with IBA/MOF.

Let us vow today to send letters to our leaders and also to MOF for resolving this old issue.

Kind regards.

O.P. SHARMA 

VRS- OBC

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[perumal maruthu]

Dear Sri Thukralji,

Dearness Allowance(பஞ்சப்படி) is paid not in the US or Europe.

It is paid in India and in some Asian countries only.

 

DA  came into existence and gained prominence during the World War II as prices of essential commodities went up sky-high.

 

DA is related to cost of living and to rise in prices. Rise in prices is measured through the INDEX. Gov't of India thro' its Bureau in Shimla, collects the prices of different commodities at different centres and publishes various types of Price Index like Consumer Price Index(CPI), wholesale Price Index(WPI) and Index for Industrial workers,etc.

PRICE INDEX so far:

1939===100

1944===100

1949===100

1960===100

1982===100

2001===100

For us in the Banking Sector,the All India Consumer Price Index for Industrial Workers (1960=100) series is being taken into account.

                    DA Formula in Banks.

 

Interms of BPS/Jt.Notes DA to Bankstaff is paid/recovered  on every rise/fall  of 4 points over certain level after merging some points with Basic pay. For the 9th BPS/Jt. Note, DA is paid over 2836 Points (base 1960=100). From 8th BPS 100% Neutralization is paid wef 1/2/2005 as against earlier tapering basis. Per Slab of 4 Points compensation is reckoned at 0.15% of one's Basic.

We find that the Bureau publishes index figures of 2001=100, and they do not publish the Index 1982=100 & 1960=100.

 

HOW TO CONVERT THE INDEX  TO 1960=100 sERIES?

 *2001=100 Index Figure X 4.93 will get us 1982=100 Index Figure

*1982=100  Index Figure X 4.63 will get us  1960=100 Index Figure.

 

Therefore, 2001=100 Index X4.63 X4.93  gives us 1960=100 Index

 

Illustration:

2012 June Index is 208

Calculate 208 X4.63 X4.93 =4747.78 In this way for Apri & June are calculate and arrive at the Average.

April 2012....Index205  converted as 205 X 4.63 X 4.93 =4679.30

May......................206       ,,         as206 X 4.63 X 4.93 = 4702.13

 

TOTAL..........................................................................=14129.21

Average........................................................................=4709.73

Less Merger Level.....(Minus 2836).................................-  2836

Difference......................................................................=1873.73

Less Index Points paid at previous quarter.......................-  1712

Increase In POINTs.........................................................=   161.73

Increase in Number of Slabs...161.73/4=40 Slabs

(Total Slabs=428(Previous) + 40=468)

 

For Pensioners (Retired bet 1/4/98  & 31/10/2002)

Average Index=4709.74

Less ..............-  1684

Difference........ =3025.74/4=756 Slabs.

 

DA @100% and  at tapered levels:(retired bet 1/4/98 & 31/10/2002)

 

Upto Basic Pension Rs 3550/ only,  the Pensioner gets DA @181.44%

For the remaining BP at tapered levels .

(TO get the tapered DA, pl use IBA- calculator for any BP & any slab)

To know the increase in DA and the loss due to non-100% neutralization, pl use

the READY Reckoner/Calculator provided by Shri CNP or Shri KTR)

 

M.Perumal

Canara Bank Pensioner

Chennai

From: lajpat rai <thukrall...@yahoo.co.in>
To: bankpe...@googlegroups.com
Sent: Wednesday, 8 August 2012 9:57 PM
Subject: bankpensioner Claification of DA Neturalisation formula.

Some of my friends are not really aware how the DA per slab is calculated. How the consumer price index figures are converted to slabs and how per slab percentage of amount per slab of da is calculated and what is the meaning of hundred percent da neutralisation. let Lerner people on face book properly make the visitors of this blog under stand the mechanism of DA it's concerns ion from price index to DA slabs and how monetary value per slab is fixed. Clear explanation of each point will be appreciated and welcomed.Lajpat rai thakral

-- You received this message because you are subscribed to the Google Groups "bankpensioner" group.To post to this group, send an email to bankpe...@googlegroups.com.To unsubscribe from this group, send email to bankpensione...@googlegroups.com.For more options, visit this group at http://groups.google.com/group/bankpensioner?hl=en-GB.

[lajpat rai]

Pl clarify 4.63 and 4.93 figures. Otherwise you have explained well. Good thanks Nd appreciations. And shy 0.15 per slab is reimbursed.,pl clarify.

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From: perumal maruthu <perumal...@yahoo.co.in>;
To: bankpe...@googlegroups.com <bankpe...@googlegroups.com>;
Cc: thukrall...@yahoo.co.in <thukrall...@yahoo.co.in>;
Subject: Re: bankpensioner Claification of DA Neturalisation formula.
Sent: Thu, Aug 9, 2012 12:01:04 PM

Some of my friends are not really aware how the DA per slab is calculated. How the consumer price index figures are converted to slabs and how per slab percentage of amount per slab of da is calculated and what is the meaning of hundred percent da neutralisation. let Lerner people on face book properly make the visitors of this blog under stand the mechanism of DA it's concerns ion from price index to DA slabs and how monetary value per slab is fixed. Clear explanation of each point will be appreciated and welcomed. Lajpat rai thakral -- You received this message because you are subscribed to the Google Groups "bankpensioner" group. To post to this group, send an email to bankpe...@googlegroups.com. To unsubscribe from this group, send email to bankpensione...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/bankpensioner?hl=en-GB.

[perumal maruthu]

Pl note 4.63/4.93 are the conversion Factors linked to the Index Base Level of

1982=100, 2001=100.

These are the conversion Factors which help us to go back to 1960=100 and find out the relevant Index Level at the current point of time. Without applying these Factors how can we calculate your DA Slabs based on 2001=100?

I repeat, Gov't does not publish Index Figures based on the Level 1960=100

If we switch over to 2001=100, there is no need to recalculate the Index Points of 1960=100 Switch-over may adversely  affect us as we continue to have the 4Points per slab formula.

0.15%:  This is the factor for 100%Neutralization DA per slab payable wef 1/2/2005

Illustration:

For a working staff of BP Rs35100/

DA=35100 X 468(Slabs) X 0.15%=Rs24640.20

DA=35100  X 428 (previous Qtr Slabs) X 0.15% =Rs22534.20

Increase in DA payable from August salary =(24640-22534)Rs2106/pm

M.Perumal

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From: lajpat rai <thukrall...@yahoo.co.in>
To: perumal maruthu <perumal...@yahoo.co.in>; "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>
Cc: "thukrall...@yahoo.co.in" <thukrall...@yahoo.co.in>
Sent: Thursday, 9 August 2012 5:52 PM

[lajpat rai]

Very good information. You are a genius .thanks

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From: perumal maruthu <perumal...@yahoo.co.in>;
To: bankpe...@googlegroups.com <bankpe...@googlegroups.com>;

Subject: Re: bankpensioner Claification of DA Neturalisation formula.

Sent: Thu, Aug 9, 2012 2:08:17 PM

[sankaran subramanian]

Sir,

Very good and useful material. This kind of informative things should be discussed and shared in this forum is very helpful to us

sankaran.s

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From: perumal maruthu <perumal...@yahoo.co.in>
To: "bankpe...@googlegroups.com" <bankpe...@googlegroups.com>

Sent: Thursday, 9 August 2012 7:38 PM