KNOW HOW D.A. IS CALCULATED!

Many readers (especially junior employees) raise doubts about the meaning of 
“Merger of D.A at 4879 points” as mentioned in 07.03.2013 talks..
Also comment on the delay in the process of wage revision talks.
Hence I will post  about the significane of merger of D.A. with Basic Pay,
And the process of wage revision talks in the banking industry.
Those who already know about these subjects may explain to their juniors in the branches.
Others pl. read/understand and tell others.Before that for ur inderstanding I give below the details of how D.A is calculated.
RE-POSTED:

KNOW HOW D.A. IS CALCULATED!

1. Labour Department will release Consumer Price Index (No.)
   every month ,based on year 2001.

2. Jan,Feb,March is one quarter. Likewise there are 4 quarters.

3.Difference between average CPI over average of previous quarter is called increase.

4.Bank D.A is calculated on CPI based on year 1960.

5.Conversion factor to year 2001  is  Index No .X 4.63 X 4.93

6.For every increase of 4 points 1 slab at the rate of 0.15% is given as D.A

7.Since everymonth’s CPI is announced on the last day of next month D.A is given effect on the subsequent month. i.e 2 months later.

EXAMPLE: for D,A Feb 2012:
APR   MAY  JUN  JULY  AUG  SEP      OCT NOV DEC

---------------------------------------------------------------------------
  186      187    189      193      194  197       198  199  197
---------------------------------------------------------------------------  Feb,Mar,Apr.
Average of Oct,Nov,Dec 2011                                              =198
On conversion =Average O N D 2011(198X4.93X4.63)        = 4519.53 

D.A already paid for Nov. 2011 (i.e average of Jul,Aug,Sep)= 401 slabs = 401X4+2836  = 4440.00

 (2836 is already merged point in 9th b,p)

Increase                                                               = 79.53

        

Slabs                                                                    =79.53/4=19.88=19

(ONLY WHOLE NUMBERS ARE TAKEN.
DECIMELS ADJUSTED IN THE NEXT MONTH )
HENCE INCREASE FOR Feb 2012 is 19x0.15=2.85% of(B.P+SPL.ALLOW.+PQP) 

 Toal D.A for Feb,Mar,Apr 2012=401+19=420 slabs=60.15%+2.85%=63%

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