Clarification on why 3% DA has been demanded instead of 2% : NFAEE

 Clarification on why 3% DA has been demanded instead of 2%

 DEPARTMENT OF ATOMIC ENERGY

Regn.No.17/9615

 Recognised by DAE vide DAE NFAEE

Office, Opp. NIYAMAK BHAVAN,

 Anusaktinagar, Mumbai 400 094

 Web site: www.nfaeehq.blogspot.com ; Email address: nfaee@yahoo.com

 Ref. No: nfaee/sg/16/225           01.11.2016

 To All Affiliates NFAEE

 Dear Comrades,

 WHY WE DEMAND 3% DA FROM 1ST JULY 2016 INSTEAD OF 2%

 As the 7th Pay commission recommendations will be implemented with effect from 1.1.2016, the AICPIN average of 2015 will be the Base Index for calculation of DA for 7th Pay Commission Formula for Calculation of DA in 7th Pay Commission is = (12 months Average of AICPIN -261.4) divided by 261.4 multiply by 100 [(263+264+266+269+270+269+269+267+268+271+275+277)/12]- (261.4) X100/261.4 = 2.91% and DA declared 2%. 

It is nothing but misappropriation. Instead of 261.4 it should be 260.46 as the DA was given 125% instead of 125.75 in corresponding to price index of 261.4 from 1st January 2016.

The rounding of the DA to lower digit will not compensate fully to the price rise and 100% neutralization DA. In other words corresponding to 125% DA, the price index shall be 260.46. Thus the formula for calculation of DA for 7th CPC should be 12 months Average of AICPIN – 260.46divided by 260.46 and multiplied by 100 Therefore the DA for July 2016 should be calculated as given below: [(263+264+266+269+270+269+269+267+268+271+275+277)/12]-(260.46) X100/260.46 = 3.27 and the DA should be 3%.

 With fraternal Greetings,

 Comradely yours,

(Jayaraj KV)

Secretary General

 http://nfaeehq.blogspot.in/