A study on Consumer Price Index , Dearness Allowance to Central Government employees & Impact on Covid, inflation on Central Government employees

 

Comrade,

                     Now it is time for 2021 index in consultation with stake holders including Central Government Employees Association, Trade unions, Bank Employees union etc.    .   The higher inflation above 4 %  has adversely affected the common man and the Central Government Employees even though DA is released for Government employees and Pensioners but it is not fully compensated due to higher inflation levels and the DA is released after six months of price rise , these six months we are not compensated for the price rise. For example if the consumer price index rises in Jan 2021 , we get paid in October 2021 as the increase in consumer price index from Jan to June is approved by union Cabinet in September, even there is an decimal is left over example if DA is increased by 2.95% , then we get only 2% DA against the price rise of 2.95% as these 0.95 will be carried over to next time . But whereas in Banks even the decimal is taken into account. So an average loss for the Central Government Employees and Pensioners is about Rs 5000 in a year due to rounding of DA to lower levels rather than higher levels.                           

                The Covid situation has resulted in higher inflation in the year 2020 especially during the period  due to various factors like shut down of industrial units due to lockdown , which has resulted in the gap between demand and supply which is the one of the causes of higher inflation, the second aspect is that food production has also gone down excess rains, lockdown, the gap between demand and supply  etc.

            In the year 2021 the higher inflation is due to rise in prices of petroleum products and higher taxation by both Central Government and State Governments  on Petrol and Diesel. This has resulted in higher inflation.   This paper has been prepared to study the impact of new consumer price index on Government employees and the need for new consumer price index 2021.

           The inflation rate along with the inflation in the food basket is at as per data released by the Ministry of Statistics & Programme Implementation (MoSPI) website  . http://mospi.nic.in/

The details are taken from the labour bureau website:   http://labourbureau.gov.in the comparison has been made for let us study five years data available with us.

 

 

Month	Retail Inflation %	Consumer Food Price Index (CFPI) in %
June 2016	4.20	The inflation in the food basket is at 3.32
June 2017	2.18	The inflation in the food basket is at -1.05
June 2018	5.00	The inflation in the food basket is at 2.91
June 2019	6.09	The inflation in the food basket is at 7.87
October 2019	4.62	The inflation in the food basket is at 7.89
December 2019	7.35	The inflation in the food basket is at 14.12
July 2020	6.93	The inflation in the food basket is at 9.82
November 2020	6.93	The inflation in the food basket is at  9.5
December 2020	4.59	Food inflation declined to 3.41
January  2021	4.06	Food inflation declined to 1.89
Feb 2021	5.03	Food inflation declined to 3.87
March 2021	5.52	Food inflation declined to 4.87
April 2021	4.29	Food inflation declined to 2.02
May 2021	6.30	Food inflation is at 5.01
June 2021	6.26	Food inflation is at  5.15
July 2021	5.59	Food inflation is at  3.96
August 2021	5.30	Food inflation is at  3.11

  

Let us study the All India year-on-year inflation rates (%) for August 2021 (Base: 2012=100)

http://mospi.nic.in/sites/default/files/press_release/CPI_PR_13sep21.pdf

 

Description	Aug. 20 Index	Aug. 21 Index	Inflation Rate (%)
Food and beverages	158.0	164.0	3.80
Pan, tobacco and intoxicants	184.4	191.7	3.96
Clothing and footwear	152.0	162.4	6.84
Housing	156.3	162.4	3.90
Fuel and light	142.9	161.4	12.95
Miscellaneous	150.0	159.6	6.40
Items in Miscellaneous
Household goods and services	148.7	156.8	5.45
Health	155.6	167.7	7.78
Transport and communication	139.6	153.9	10.24
Recreation and amusement	146.6	156.1	6.48
Education	157.5	163.5	3.81
Personal care and effects	158.4	160.0	1.01

 

 

 

 

 

 

 

 

Comparison of one year increase August 2019 – August 2020

Groups	Aug, 2019	Aug, 2020	Increase in points	Weightage 2001	Increase in % as per 2001 index	Weightage 2016	Increase in % as per 2016 index
Food Group	330	352	22	46.2	10.16	39.2	8.62
Education,   health Pan, Supari, Tobacco & Intoxicants	391	408	17	23.3	3.96	30.3	5.15
Fuel & Light	282	299	17	6.6	1.12	6.1	1.03
Housing	434	465	31	15.3	4.74	16.9	5.24
Clothing. Bedding & Footwear	226	230	04	6.4	0.256	5.5	0.22
Miscellaneous Group	254	260	06	2.3	0.138	2.1	0.125
General Index	320	338		100	20.374	100	20.385

The price rise in 2019-20  year is not only increasing in food with 22 points , but also in housing which has shown price rise of 31 points,  both Miscellaneous and fuel increased by 17 points . So we cannot say that food basket alone will contribute to higher Consumer Price Index

The reduction in food basket is taking place in 1982 it was 57%, it was reduced to 46.2% in 2001 and now in 2016 it is 39.17%, The increase in miscellaneous basket is taking place in 1982 it was 16.36 %, it was increased to 23.26 % in 2001 and now in 2016 it is 30.3 % The housing allocation has increased from 15.3 to 16.9 this is good move in a long run may be 2020 -21 we are not seeing enough increase.  The decrease in Fuel and light   from 6.43 % to 5.5 % has affected us.  

We can notice in the year 2020 the inflation rate is much higher than the year 2019 , especially the inflation in the food basket. However we can notice in  that in last five years the inflation in the food basket is less than the inflation rate & also we can notice that in Dec 2020 to August 2021 the food inflation has decreased compared to 2019-20 levels, so we should not allocate more percentage on food basket ,  as  the vegetable prices varies from one place to another and on a monthly basis / seasonal basis it changes so it is difficult to predict the impact of food prices on DA for example the prices of the onion/ tomato/ potato will be varying from Rs 10 per kg to Rs 100 per kg in a year. The prices of food articles such as rice, wheat , pulses are steady increase. The other food articles such as oil etc rise and fall depending upon the production. Expenditure on food consumption by industrial workers has fallen significantly in 15 years from 45% to 36% with corresponding increase on non-food items,

The Union government has changed the base year for the consumer price index for industrial workers (CPI-IW), which will affect the minimum wage of private sector workers and Dearness allowance (DA) of government employees without consulting the trade unions. The CPI-IW (2016=100) series replaces the CPI-IW (2001=100) series. As per the recommendations of the International Labour Organization (ILO), Index Review Committee (IRC) and National Statistical Commission (NSC), the base year of price index numbers should be revised at frequent intervals, generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers. Earlier to this revision, the series were also revised from the year 1944 to 1949; 1949 to 1960; 1960 to 1982 and 1982 to 2001 since inception of Labour Bureau.

All India index for the month of September, 2020 stands at the level of 118 and linking factor for the conversion of new series index to previous series on base 2001=100 is 2.88. (AICPIN for month September 2001-100 based is 340) The CPI-IW (2016=100) series replaces the CPI-IW (2001=100) series. 

The life style of the people has changed considerably in past two decades, the purchasing priority has changed from food and other items as television, mobile, transport, entrainment, health etc.     But the trade unions were never consulted by the Government at any stage in either the in 2001 and 2016 index formation.

The number of centres are also increased from 78 to 88 centres. The number of States/UTs has increased to 28 under 2016 series as against 25 in the 2001 series. The sample size was increased from 41,040 families to 48,384, and the number of selected markets for collecting retail price data from 289 to 317. The number of items directly retained in the index basket has increased to 463 items as against 392 items in the 2001 series. This may dilute the effect of raise in prices in in a  particular item.

 

So we should increase the allocation on Household goods and services, Fuel and light  Clothing and footwear, Health, Transport and communication rather than only concentrating on food. 

The Covid has affected the entire world which had resulted in economic fallout , India has also been affected which has resulted in economic impact on the working class , poor people , Government employees were also affected by it , which has impacted the life of the working class , poor people ,  as many industrial units were shut down , business was its lowest this has pushed up the inflation levels. 

The higher inflation above 4 %  has adversely affected the common man and the Central Government Employees even though DA/DR  is released for Government employees and Pensioners but it is not fully compensated due to higher inflation levels and the DA / DR  is released after six months of price rise , these six months we are not compensated for the price rise   .  

The prices are calculated as per Government rates, not on prevailing market rates, net difference of price rise about 30 % which is always we are denied right from 1960 to till date .

The overall the Government employees and pensioners are affected due to price rise and higher inflation as they are not fully compensated against this. The CPI-IW (2016=100) series replaces the CPI-IW (2001=100) series. This revision has taken place after 15 years.  The consumer price index weightage should be re indexed every 5  years (five years ) so that the employees and pensioners will get proper DA / DR the last index has taken place in the year 2016 . Proper linking factor should also be provided.  Now it is time for 2021 index in consultation with stake holders including Central Government Employees Association, Trade unions, Bank Employees union etc.    .   

                

                                                                                      Comradely yours

                                                                                         (P.S.Prasad)

                                                                                     Working President

 

 

 

DA and CPI August 2021

 The All-India CPI-IW for August, 2021 increased by 0.2 points and stood at 123 (one hundred twenty three). 

DA August 2021 is 31.85 %  

COC Karnataka is scheduled to be held on Wednesday, the 29th September, 2021

                                                                                                            

Respected Comrades of all the Affiliates of COC Karnataka,

A meeting of Exe Com of the COC Karnataka is scheduled to be held on Wednesday, the 29th September, 2021 @ CR Building Annexe, Ground Floor, Queen's Road, Bengaluru @ 6.30 p.m. to discuss the following issues:

1) Demands of CG employees and implementation 

2) Observation of CHQ programs 

3) Financial position and remittance of subscription and;

4) Organizational review

All are requested to attend the Meeting without fail.

Thank you Comrades. 

COC Zindabad ✊✊

CPI and DA July 2021

 The All-India CPI-IW for July, 2021 increased by 1.1 points and stood at 122.8 (one hundred twenty two and point eight). 

DA July 2021 is 31.81 %  

LEAVE ENCASHMENT AND GRATUITY Orders

 

 Government has ordered payment of gratuity and leave encashment for those who retired from 1.1.2020 to 30.6.2021 by including DA that had become due but not released.

CLICK HERE FOR ORDERS 

Photos of 7th September program at Bengaluru

 

Revised Rate of Dearness Relief -w.e.f. 01.07.2021

 

Revised Rate of Dearness Relief to Central Government Pensioner/Family Pensioners w.e.f. 01.07.2021

CLICK HERE FOR ORDERS 

DA orders July 2021

 Revised DA orders for 28% with effect from 1st July 2021

CLICK HERE FOR ORDERS 

Restoration of Dearness Allowance (DA) and Dearness Relief (DR)

 In a major relief to central government employees and pensioners, the Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved a steep hike in Dearness Allowance (DA) and Dearness Relief (DR) to 28 per cent from 17 per cent, Union Minister Anurag Thakur announced.

The hike in DA and DR will be effective from July 1, the minister said adding that this move will impact 48.34 lakh central government employees and 65.26 lakh government pensioners.

“The DA rate which was 17 per cent earlier, has been risen by 11 per cent to 28 per cent,” the minister said.

Consumer Price Index May 2021 and DA

 All-India Consumer Price Index for Industrial Workers (2016=100) for May, 2021 increased to 120.6 points (Old 347 points)  compared to 120.1 points (old 345 points)  for April 2021.

Inflation for May, 2021 went up to 5.24 per cent compared to 5.14 per cent of previous month. Similarly, Food inflation also increased to 5.26 per cent from 4.78 per cent in the previous month.

DA as on 1st June 2021 is 30.65 % 

Expected DA as on 1st July is 31%

Decision taken in the Staff Side meeting held on 25/06/2021

 

CLICK HERE FOR DETAILS 

48th Meeting of the National Council, (JCM) – 26.06.2021 at 10.30 onwards

 

F.No.3/4/2021-JCA
Government of India
Ministry of Personnel, PG & Pension
Department of Personnel & Training
Establishment (JCA) Section

North Block, New Delhi
Dated; June 9, 2021

To
The Secretary,
Staff Side, National Council (JCM),
13-C, Ferozeshah Road,
New Delhi

Subject: 48th Meeting of the National Council, (JCM) – 26.06.2021 at 10.30 onwards

The 48th meeting of the National Council (JCM) is scheduled to be held under the Chairmanship of Cabinet Secretary on 26.06.2021 (Saturday) at 10.30 AM onwards. Detailed Note on Agenda, Venue and mode of conduct of meeting will be communicated shortly.

Kindly make it convenient to attend the meeting through the mode to be communicated.

Yours faithfully,
(S.P.Pant)
Deputy Secretary (JCA)

Source : NCJCM Staff Side

Note: The  issue of freeze DA/DR will be discussed in Govt-Staff meeting. Central Government decided to hold the 48th Meeting of the National Council (JCM) on 26.06.2021 under the Chairmanship of Cabinet Secretary to discuss various service matters of Govt Servants.

Consumer Price Index & DA

 All-India Consumer Price Index for Industrial Workers (2016=100) for April, 2021 increased to 120.1 points (old 340 points) compared to 119.6 points (old 333.58) for March , 2021.

DA as on 1st May 2021 is 30.06% .

DA from 1st July, 2021 is likely to be  30% or  31%

Relaxation of Rule 80-A for payment of provisional Family Pension on death of a Government Servant

 

To

The Secretary General

Confederation of Central Government employees and Workers

New Delhi.

Sub: Relaxation of Rule 80-A for payment of provisional Family Pension on death of a Government Servant during service due to the delay in finalization of family pension and gratuity results in hardship to the family of the deceased Government servant.

Comrade ,

                 With reference to the Relaxation of Rule 80-A for payment of provisional Family Pension on death of a Government Servant during service  the Central Government had issued  OFFICE MEMORANDUM Dated 29th July, 2020 issued vide No. 1/11/2020-P&PW (E) Government of India Ministry of Personnel, P.G. & Pensions Department of Pension & Pensioners’ Welfare. In respect of payment of provisional Family Pension on death of a Government Servant during service

                The Central Government had issued this order to curtail the hardship to family members in respect of provisional family pension and death gratuity in favour of claimant or claimants. But this order falls short of aspirations of the family members the hardships faced by the family members especially during covid times are not resolved by the above office memorandum dated 29^th July 2020 and needs immediate attention to improve this OM. 

The highlights of the order is as follows:

 

1)     The Head of Office shall not wait for forwarding of the family pension case (including Form-14, Form-18 and other relevant documents mentioned in Rule 80) to Pay & Accounts Office before sanctioning the provisional family pension.

 

2)      In order to avoid any hardship to the family of the deceased Government servant, it has been decided to relax the provisions of rule 80-A of the CCS (Pension) Rules, 1972 to the extent that if a claim for family pension in Form 14 along with death certificate and bank account details of the claimant has been received and the Head of Office is satisfied about the bonafide of that claim, he shall sanction provisional family pension immediately

 

3)     The Pay & Accounts Office shall release the provisional family pension on the basis of sanction order issued by the Head of Office without insisting for any other documents including service book.

 

4)     The payment of provisional family pension sanctioned as may initially continue for a period of six months from the date, following the date of death of employee. The period of such provisional family pension sanctioned may be further extended, for not more than six months at a time, on the advice of Pay & Accounts Office and with the approval of Head of Department (HOD).

 

The practical problems the family of the deceased Government faces are follows :

1)     The pension papers should be submitted to the head of the office only after issue of death certificate by the local Government agencies such as Municipal corporations, Village level Panchayats  etc .     Due to lockdown and covid situation considerably time is taken to get the certified death certificate form local government agencies at present it takes about two to three months’ time itself . After getting the death certificate they take time to fill the papers online system portal and processing it by office and PAO.

 

2)     Many of the  Pay & Accounts Offices is always not located in the  same city sometimes there are located thousands of  kilometres away due to covid and lockdown the transportation of papers are difficult and time consuming  for example a family pension case is processed in Bangalore and sent to New Delhi PAO office then it takes about 10 days’ time to, reach this office and then case to process in PAO then takes another 10 to 15 days so there shall be an month delay for provisional family pension to be issued .

 

In view of the above the above order shall be modified as below :

 

1)     The death certificate issued from doctor and cremation certificate   should be sufficient for issuing of the provisional family pension .

 

2)     The head of the office shall issue the and pay the family pension without obtaining permission from the  Pay & Accounts Offices, they can only intimate the Pay & Accounts Offices only.

  

3)     The provisional family pension shall be issued for at least one year instead of six months or till the pension case is settled .                  

I kindly request to take up the above issues with the Central Government on priority basis .

                                                                       Comradely yours

 

                                                                      (P.S.Prasad)  

                                                                    Working President

 

 CLICK FOR GOVERNMENT ORDER

 

Covid affecting the employees and family members

 

                                           Dated: 18/5/2021

To

The Secretary General

Confederation of Central Government employees and Workers

New Delhi.

Comrade ,

                   The Covid situation in our country especially the 2^nd wave is very bad and taking away the lives of many younger generation people including the Central Government employees , the CG employees such as Postal , Railways, CGHS, Income tax , Audit , Central Excise   etc ,are the  frontline workers who are in public contact each day , the problems faced are many for them , the Confederation shall take up the cause of the Central Government Employees and their families interest with the Central Government for a meaningful solutions .

1)    The Central Government employees and their family members should be considered as frontline workers and provided with vaccinations at their respective offices.

 

2)    The Central Government Pensioners and their family members  should also be provided vaccinations at CGHS dispensary’s. 

 

3)    Many Central Government employees are carrying out the Government works in spite of  Covid situation ,in the process they are affected  by covid virus. Some employees who have recovered from covid are spending lakhs of rupees for  treatment and the reimbursement is taking place as per state government rates, which is far below the private hospital rates , as such for example for Rs 4 lakhs hospital bill they are reimbursed with just 1.5 lakhs ,  hence the entire medical treatment costs including oxygen support as oxygen concentrators rent and oxygen cylinders  and  medicines for home treatment should be reimbursed fully .

 

4)      Sadly many Central Government employees have lost their lives while performing the government duties due to covid or other wise. Their family members are facing many issues such as pension settlement, medical treatment , CGHS card issue etc , Due to lockdown and covid issues many state government departments are not functioning properly , the issue of official death certificate by local authorities  is taking considerably time may be a few months , hence there are not in a position to apply for the pension settlement and CGHS card . Secondly the family members are deprived of CGHS medical facilities   as they have to surrender it immediately after death .hence following suggestions are proposed.

 

 

A)    The existing  CGHS card shall be retained by the family members till the new pensioners CGHS card is provided to them.

 

B)     The pension cases to be processed   to be processed immediately upon the doctors death certificate instead of local Government certificate and later stage they can produce it as and when the death certificate is issued  by local state Government agency .

 

 

C)     The CGHS is asking for PPO number for issuing CGHS  pensioner card in this respect temporary  card for one year  shall be issued based upon the letter from concerned Head of office stating that the pension case is under process , this letter should be sufficient rather than PPO number .

 

D)    Immediate financial assistance to these family members shall be Rs  2 lakhs which can be deducted in gratuity amount at later stage.

 

E)     The pension cases shall be settled within three  months of death of the employee and provisional pension shall be fixed by head of office .

 

I kindly request to take up the above issues with the Central Government on priority basis .

                                                                Comradely yours

 

                                                                  (P.S.Prasad)  

                                                          Working President

 

                   

 

CPI and DA March 2021

1. All-India Consumer Price Index for Industrial Workers (2016=100) for March, 2021 increased to 119.6 points compared to 119.0 points for February, 2021.
2. The increase observed in index is mainly due to items like Cooking Gas, Petrol, Poultry Chicken, Edible Oils, Apple, Tea Leaf, Served & Processed Packaged Food, etc. which experienced an increase in prices.
3. Inflation for March, 2021 went up to 5.64 per cent compared to 4.48 per cent of previous month. Similarly, Food inflation also rose to 5.36 per cent from 4.64 per cent in the previous month.

DA as on 1st April 2021 is 29.52% .

DA from 1st July, 2021 is likely to be  30% or  31%

CPI and DA -February, 2021

 

 The All-India CPI-IW for February, 2021 increased by 0.8 points and stood at 119.0 (one hundred nineteen and point zero). (old 342 points)

The maximum upward pressure in current index came from Fuel & Light group contributing 0.31 percentage points to the total change.

DA as on 1st March  2021 is 28.92%.

Expected DA from July 2021 likely around 30%.

A Condolence Meeting to pay homage to Com. M. Krishnanji,

 Respected Comrades of all COC Affiliates,

Hope all are in good health.

A Condolence Meeting to pay homage to Com. M. Krishnanji, Vice President Confederation, Ex.Secy Gen of Confederation & NFPE and Ex.General Secretary AIPE Union Gr- C, will be held on 9th March, 2021 at 6.30 p.m. at ITEF Association room, Ground floor, C.R.Buiding Annexe, Queen's Road, Bengaluru.

All the Office bearers and members of the  COC, Karnataka are requested to attend the Meeting to pay our respects and tributes to our beloved leader.

It will be followed by a COC meeting.

Thank you all. Take care. Stay Safe.

Confederation Zindabad 

COC Karnataka Zindabad 

VERY SAD AND SHOCKING NEWS.

 

Our beloved leader, a legend, stalwart and veteran leader of trade union movement, Com. M. Krishnan passed away due to Covid today on this day, 1st March 2021.

He lead Postal Unions and Central Government Employees Unions for decades. 

He was very knowledgeable, militant, Dedicated and committed Comrade. 

He was an unparallel leader. 

No words to express sorrow. 

Our association with Com Krishnanji was immense , 

We on behalf of Confederation of Central Governement employees of Karnataka state , our heartfelt condolences to bereaved family and Comrades of  country. we dip our flag .

RED SALUTE COM. KRISHNAN.

COM. KRISHNAN AMAR RAHE,

LONG LIVE COM. KRISHNAN.