12th BPS agreed DA rate

For Bank pensioners the rate of DR is 0.07% per slab , while it is 0.08% for LIC employees.

Besides ,for Bank employees,wage revision is done  pegging DA merger to AICPI as at 1/11/2021.

In case of LIC, we can expect DA merger  by pegging to AICPI as at 1/8/2022.So , although it looks attractive  at 1% for index base 2016, we need to work out in relation to our higher rate of DR compared to Banks.

Our rate of DR will be 6352/8456*0.08= 0.0600946074

16x0.0600946074=0.9615137184

No doubt 1% for each point is higher than the above figure, Bank employees get a better increase in the rate than LIC employees in this rationalization.Unions of LIC will have to negotiate  for 1.15% [ which will be slightly above (  0.08/0.07)*100 ]to keep the differential with the PSB rate of DA.

The serving employees' unions may need to make a note of it for responding with their demand in the information sharing session.

Of course such changes in base of DR rate necessitate active consideration of ugradation of pension with every wage revision.

C H Mahadevan 

On Wed, 17 Jan 2024, 12:13 R K Sahni, <rksahni278@gmail.com> wrote:

Dear Shri Mahadevan ji,

In Banks the current rate of DA is 0.07% for each four points  rise or fall in quarterly AICPI-IW index at Base 1960=100 over 6352.

Now the Scales have been upgraded to 8088.

The revised DA rates is fixed at 6352/8088×0.07 % ie 0.055%

Now the Base is converted to 2016=100.

One point of AICPI-IW of Base 2016=100 is equal to Base 1960=100

=1×2.88×4.63×4.93=

=65.738592

=65.738592/4=16 slabs

DA =16×0.055%

=0.88%

Now the new  rate of DA has been fixed at 1.00% for each one point of new Base which is fore favourable.

Kindly favour me with your.

With regards, 

R K SAHNI