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Sunday, May 15, 2016

Method of wage revision followed in August 1997‏


Referring to the post of Mr SN to know how the wage revision was effected on 1/8/1997, I believe that the following methodology was followed:-

The DA applicable for AICPI 1740 as at 1/8/1997 was merged with the existing Basic Pay. On this merged total a weightage (of % increase) was applied on 1/8/1997 on the merged figure was arrived at, which became the revised Basic Pay.

The tapering DA formula applicable to in-service employees was only followed as per 1/8/1992 rates and not the 100% neutralised rate of 0.35%.

I attach an example of AO with a Basic Pay of Rs 7590 before revision and the Basic Pay became Rs 12575 after revision on 1/8/1997 which worked out to 11.54% more than the merged Basic Pay plus DA as at 1/8/1997. 11.25% was only an average and it varied according to cadre and stages in the scale.

This is what I presume that LIC must have done while revising wages on 1/8/1997.


Greetings.
C H Mahadevan


How wage revision has been effected on 1/8/1997?


Example of AO with Basic Pay  of 7590
Existing Basic Pay  as per 1/8/1992 scales
7590
DA  as per tapering formula as at 1/8/1997
3684
  Merged  Basic Pay +DA
11274
Revised Basic Pay  as at 1/8/1997 as per fitment chart
12575
Weightage given after merger of Basic Pay & DA
11.54
( 11.25% is only the average percentage of weightage. It can vary according to the cadre and according to the stages in the scale)