RBI Pensioners to get minimum 13 slabs in Aug 14

16 Jul

This post is in response to the queries  as to how the reduction of 16 slabs of Dearness Allowance(DA) for in-service employees in April 14  will affect the RBI Pensioners Dearness Relief(DR) in August 14. And whether there will be any increase of DR for Pensioners in Aug 14!

The answer is pensioners may get 13-17 slabs in Aug 14 depending on the CPI numbers to be released on 31st July 14 and is explained below:

As per  Pension Regulations 1990, dearness relief shall be payable …  on the quarterly average of the All India Average Consumer Price Index for Industrial Workers in the series 1960=100. Dearness relief shall be payable for the half year commencing from the 1st day of February and ending with 31st day of July on the quarterly average of the index figures published for the months of October, November and December of the previous year and for the half year commencing from the 1st day of August and ending with the 31sl day of January on the quarterly average of the index figures published for the months of April, May and June of the same year.
  The existing employees are, however, paid DA on quarterly basis.

In the month of Feb 14 Pensioners(1-11-2007 on wards) as well as existing employees were getting 666 slabs of DA @99.9% of BP on the basis of average Index (CPI 5500).

In the month  of May 14  DA of existing employees was reduced by 16 slabs based on quarterly data for the period 1-1-14 to 31-3-14 (235,237,238 ) and the last  quarterly  average (CPI Index)applicable to them fell to   5432.67 . As a result, the DA was reduced to 650 slabs from 666 slabs, for the period 1st  May 14 to 31st July 14.  Pensioners continue to get 666 slabs till 31-7-14.

The monthly Consumer Price Index numbers (Base 2001=100) for the months of Jan 14 to June 14 released so far  are as under:
Jan-14 Feb-14 Mar-14 Apr-14 May-14 June-14
237 238 239 242 244
to be announced on
31st July 14
(Assumed 246)
Now the Index  numbers  for Apr-14,(242),May(244) and June-14 (Assumed 246) give quarterly average of 5569 points. Last average in respect of Pensioners was  5500/5501 in Feb 14. So they will get 68 points or 17 slabs(5569-5501).
However,    in service employees are being paid DA on the Average of  5432 after reduction of 16 slabs. So, they will now  get 137 (5569-5432) points or 34 slabs on the basis of above Index numbers.
 In other words. the loss of  16 slabs to the employees in Apr-14  is not applicable  to pensioners. The loss will cease from Aug 14.
Hence, the percentage increase of Dearness relief for RBI pensioners effective Aug -14, is estimated as per the table below:
Pensioners
retired
between——->>
the period
1-11-2007
onwards
1–11-2002
to
31-10-2007
1-11-1997
to
31-10-2002
increase in slabs 17 17 17
% increase 2.55 3.06 4.08

Actual number of slabs will be known only after the index number for the month of June-14, are released on 31st July 2014. The above information is for the  study purpose only.

We hope the matter is now clear. Comments and suggestions are welcome!

Advertisements

8 Responses to “RBI Pensioners to get minimum 13 slabs in Aug 14”

  1. A N RAHEJA 16/07/2014 at 8:35 pm #

    I feel DA for working employees on the basis of quarterly average of JAN, FEB & MARCH was applicable from Ist May 2014 and not from 1st April 2014 as has been written in the post DA for Pensioners

    Like

  2. sarveswara 16/07/2014 at 8:52 pm #

    good news. thank you

    Like

  3. siladitya choudhury 17/07/2014 at 11:09 am #

    Dear sir,

    Just an elementary query – why is that DA revision for the pensioner similar to the in service staff is not revised on quarterly basis instead of half-yearly basis ?
    regards

    Like

    • wdtom 24/07/2014 at 8:43 pm #

      Pension regulations provide for half-yearly DR revision.in service employees are paid DA on quarterly basis as per the various bipartite settlements.
      pensioners would have lost 16 slabs for the quarter ending july14 had it been on quarterly basis!

      Like

  4. airpalni vael 03/08/2014 at 12:18 pm #

    Thank you for your services.

    Like

  5. dinkar damle 04/08/2014 at 9:22 am #

    Do you know that email address of labourbureau is changed.New email add is labourbureau.gov.in

    Like

    • wdtom 04/08/2014 at 1:56 pm #

      what you have given is not the email address. this is the web site address, both the addresses labourbureau.gov.in and labourbureau.nic.in are working for reaching the web site.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: