New CPI series for industrial workers to boost salaries
Around 30 million industrial workers are set to rise as a government-led committee has approved a new base year for the consumer price index for such workforce. Consumer price index numbers for Industrial Workers is designed to measure a change over time in prices of a given basket of goods and services consumed by a defined population. Urban CPL increased by 6.9 percent on annual basis and increased by 1.9 percent on monthly basis. The annual average inflation rate between november 2019 and november 2018 was 2 percent.
The move will also benefit around 4.8 million central government employees,whose dearness allowance (DA) a component of salary which undergoes revision to keep pace with the inflation rate in the economy is linked to this inflation index. A standing tripartite committee,led by principal labour and Employement Advisor B N Nanda,met on february 27 and gave the nod to the new series of the CPI for Industrial Workers keeping 2016 as the base year. The DA is based on the CPI-IW. The DA will undergo a drastic change after the government's approval. DA of the central government and private sector employees is updated to adjust for inflation every six months. The seventh pay commission had decided to choose the CPI-IW as the index for adjusting inflation for central government employees. Even trade unions in the private sector use the CPI-IW to negotiate for the minimun wage of workers.
The CPI-IW with the base year 2016 will give more weight to non food items than the food ones compared to the 2001 index, according to a copy of the presentation given to the committee,which met on february 27. To develop the new index,the national statistical office conducted a survey of over 48,000 working families,tracking their consumption patterns,during january-December 2016.
Around 30 million industrial workers are set to rise as a government-led committee has approved a new base year for the consumer price index for such workforce. Consumer price index numbers for Industrial Workers is designed to measure a change over time in prices of a given basket of goods and services consumed by a defined population. Urban CPL increased by 6.9 percent on annual basis and increased by 1.9 percent on monthly basis. The annual average inflation rate between november 2019 and november 2018 was 2 percent.
The move will also benefit around 4.8 million central government employees,whose dearness allowance (DA) a component of salary which undergoes revision to keep pace with the inflation rate in the economy is linked to this inflation index. A standing tripartite committee,led by principal labour and Employement Advisor B N Nanda,met on february 27 and gave the nod to the new series of the CPI for Industrial Workers keeping 2016 as the base year. The DA is based on the CPI-IW. The DA will undergo a drastic change after the government's approval. DA of the central government and private sector employees is updated to adjust for inflation every six months. The seventh pay commission had decided to choose the CPI-IW as the index for adjusting inflation for central government employees. Even trade unions in the private sector use the CPI-IW to negotiate for the minimun wage of workers.
The CPI-IW with the base year 2016 will give more weight to non food items than the food ones compared to the 2001 index, according to a copy of the presentation given to the committee,which met on february 27. To develop the new index,the national statistical office conducted a survey of over 48,000 working families,tracking their consumption patterns,during january-December 2016.
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