Drastic reduction in DA points
The govt has revised the base year for computing Consumer Price Index(Industrial Workers). Now it will start from September 2016 instead of 2001. The result of the gap of 15 years would be the DA of Sept 2020 (without freeze) has come down from 26.6% to 18% i.e. a drastic reduction of 8.6% ! So all
The govt has revised the base year for computing Consumer Price Index(Industrial Workers). Now it will start from September 2016 instead of 2001. The result of the gap of 15 years would be the DA of Sept 2020 (without freeze) has come down from 26.6% to 18% i.e. a drastic reduction of 8.6% ! So all Govt employees who were waiting for increase of DA from 17% to 31% from *Jul 2021* (after unfreeze) will be in for a surprise when they at-most get an increase of 5-6% instead of 14%. To make the new series comparable with the older one, the concerning Ministry stated that it has to be calculated using a linking factor of 2.88. Taking this into account, the CPI-IW for *Sept 2020* is 118, and with the linking factor it works out to be near 340 in the earlier series. But , a linking factor of 2.88 while shifting the base year 2001 to 2016 (after 15 years) is *aggressive undervaluation* and suppression of impact on price changes.

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