The Ministry of Labor on Thursday released the new series of Consumer Price Index (CPI-IW) for industrial workers. The Centre’s move has sparked a rumor that it will lead to a pay hike for central government employees ahead of Diwali.
The Consumer Price Index-Industrial Workers (CPI-IW) refers to the total price level in an economy. These are the most important single price figures with financial implications. The CPI-IW is primarily used to measure retail inflation in the economy and, in addition, to control the loving payments of government employees and workers in the industrial sector.
It is also used to measure inflation at retail prices and to determine and revise minimum wages in scheduled jobs. In the future, a basic amendment will be made every five years, Labor Minister Santosh Kanwar said in a statement.
“Minister of State for Labor and Employment (Independent Responsibility) Santosh Kumar Kanwar has released the new Series of Consumer Price Index for Industrial Workers (CBI-IW) for the base year 2016, which is compiled and maintained by the Bureau of Labor, an affiliated office of the Ministry of Labor and Employment,” the ministry said in a statement.
The new series of CBI (IW) will replace the existing 2001 series with the base year 2016. Previously, the series was edited from 1944 to 1949; 1949 to 1960; From the inception of the Bureau of Labor from 1960 to 1982 and from 1982 to 2001.
However, this will not lead to an increase in the DA allowance of Central Government employees. On October 16, the Ministry of Labor rejected reports that this would lead to a pay rise for government employees and industrial workers. “Ministry of Labor denies reports coming from a section of the media appearing under the headline” Government. Employees have higher DA. “Released on October 16, 2020,” the ministry said in a statement.
The ministry has never said that the new code will lead to a pay rise for industrial workers and civil servants, it clarified. The pay rise for industrial workers and civil servants depends on the behavior of the new series, which is very quick to predict at this point.
The new CBI-IW series will be even more comprehensive as it will have more than 300 products in its basket such as health, education and food. Besides, it will collect data from about 90 different centers or markets across the country in the new series.
If implemented, the decision would benefit at least 48 lakh central government employees. Earlier, the government had postponed the increase in the allowance of central employees due to the corona virus infection. Currently, federal employees are entitled to a loving allowance of 17 percent.
In order to stimulate consumer demand in the economy, the government recently gifted a Diwali prepaid card to central employees. An interest free loan of Rs 10,000 for Central Government employees can be availed of the prepaid card till March 31, 2021.
The Minister lauded the steadfastness and exemplary role of the Bureau of Labor, which has finally culminated in the release of the updated series CBI (IW). It also justifies the existence of an organization such as the Bureau of Labor, which is dedicated to labor and price statistics, as data on all aspects of labor are important to serve as inputs in policy making.