02 April, 2014

IDA decrease from 90.5% to 88.4%. in PSU's: Details and grievance and comparision.

PSU Employees Industrial Dearness Allowance (IDA) Rates from April 2014 decreased in 2014-2015…

Industrial Dearness Allowance(IDA) rates of April 2014 are based on All India Consumer Price Index(IW) issued by the Department of Labour Bureau on average for the specified months of December-2013 and January, February 2014.

Now according to the Index numbers issued by Department of Labour Bureau for the month of December-2013, CPI for Industrial Workers(IW) decreased to 239 from 243 and for January 2014 it stood at 237, a decrease of 6 points in CPI, but recorded an increase of 1 point in February 2014 which will be taken for April 2014 Industrial Dearness Allowance(IDA) rates.

By the decrease by 5 points in CPI index, the IDA rates from April 2014 will be decreased by around 2.1% from present Industrial Dearness Allowance(IDA) rates @ 90.5% from 01.04.2014, and the new IDA rates from April 2014 is 88.4%.

 The decrease of IDA rates of PSU employees from present rates is the first time decrease after pay revision from 01-01-2007.

The major grievance by PSU employees like MTNL, BSNL and other Mahratnas is that CDA is being raised at 10% everytime and IDA is going to be reduced, its unfair when market price of commodities is not decreasing.

But the answer to this point lies in by this explanation : 
this decrease of IDA in PSU depend on the last Dec,jan,feb and applicable from april-14 (quarterly counted) but CDA depend upon June to nov which applicable from jan-14(half yearly counted)


decrease of inflation (on paper) will affect the next CDA which depend on dec-to-may and will applicable from July-14
when we compare the IDA & CDA the  formula i as below.
1st qtr da of psu+ 2nd qtr da of psu =1st half year da of CG
3rd qtr da of psu+ 4th qtr da of psu = 2nd half year da of CG

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