How, our wages are revised

How, our wages are revised.

Comrades, As the Wage negotiations have just started, everyone is having plenty of doubts on the following:.

Here is an attempt to give you answers for the above question..

Dearness Allowance merger Continuation,. Sl.No Description Workings Remarks 1. Difference in DA points 8088 – 6352 = 1736 DA points as per CPI- IW 2. Total no of slabs 1736/4 = 434 One slab is equivalent to 4 points 3. Slabs in percentage terms 434*0.07 = 30.38% every slab represents 7 basis point or .07%.

To summarize. DA Merger of 8088 points actually means inflating your existing Basic pay by 30.38%..

Step 2: Overloading. Sl.No Industry comparision Percentage overload 1. Commercial Banks 3% 2. State Bank of India 3% 3. Reserve Bank of India (previous settlement) 7.15% for class III cadre 4. Reserve Bank of India (upcoming settlement) ?.

This is how our revised basic will look like assuming an overload similar to the last settlement.

Existing Basic [A] DA merger [ B=A * 1.3038 ] Overload C= B *1.0715 Revised Basic Existing Increment Revised Increment ₹28,620/- 37314.80 ₹39,975/- ₹1440/- ₹2010/- ₹30,060/- 39192.20 ₹41,985/- ₹1920/- ₹2680/- ₹31,980/- 41695.50 ₹44,665/- ₹1920/- ₹2680/- ₹33,900/- 44198.80 ₹47,345/- ₹1920/- ₹2680/- ₹35,820/- 46702.10 ₹50,025/- ₹1920/- ₹2680/- ₹37,740/- 49205.40 ₹52,705/- ₹1920/- ₹2680/- ₹39,660/- 51708.70 ₹55,385/- ₹1920/- ₹2680/- ₹41,580/- 54212.00 ₹58,065/- ₹2080/- ₹2905/- 43,660/- 56923.90 ₹60,970/- ₹2080/- ₹2905/-.

Existing Basic [A] DA merger [ B=A * 1.3038 ] Overload C= B *1.0715 Revised Basic Existing Increment Revised Increment ₹45,740/- 59635.80 ₹63,875/- ₹2370/- ₹3310/- ₹48,110/- 62725.80 ₹67,185/- ₹2370/- ₹3310/- ₹50,480/- 65815.80 ₹70,495/- ₹2370/- ₹3310/- ₹52,850/- 68905.80 ₹73,805/- ₹2850/- ₹3980/- ₹55,700/- 72621.70 ₹77,785/- - - Note: Revised Increment = Existing Increment * 1.3038 * 1.0715 The actual revised basic might differ depending on the Overload percentage and 100% DA neutralization..

What are the other components that is revised using the same principle.

The Bottom line is. Component Percentage increase (Approximate) Remarks Pay Component (like Basic pay, Special Pay, Additional Special Pay, Grade pay etc.) 40% to 45 % Housing loan entitlement will increase by similar percentage Gross Pay 20% to 30% Please wait for availing festival advance, OL Encashment or even applying loan from society. Net Pay 14% to 21% Assuming a 30% flat income tax rate. For lower rates of income tax net hike could be even bigger by around 1.4% to 2.1%.