ajeetvarma50
15

hello,
I am working in a organisation where wage revision for the employees is due. Can any one please tell me that how "load factor" is to be arrived in the new pay scales after merging dearness allowance to some extend in the previous pay scales.
Regards

From India, Mumbai
abbasiti
517

Dear Ajeet Kumar,

For Central Public Sector Undertakings, there is a guide line from Department of Public Enterprises under the Ministry of Heavy Industries regarding wage revision w.e.f 01.01.2010.

As per the above guide line, the Industrial DA as on 1.1.2007 will be merged with the basic as on 31.12.2006.

The DA corresponding to AICPI on 1.1.2007 is 68.8% and after 50% DA merger (that also as per DPE direction) it is 78.2%.

The maximum fitment benefit on the above basic+DA is 30%.

i.e. In normal case, (basic+DA)x130% will be the revised scale. Annual increment will be 3% of the new basic.

DA on 1.1.2007 will be zero. Instead of the base points of 1708 (base 1960) towards AICPI, the new base points will be 2884. The revised DA will be; enhanced points/base points x 100.

For eg. on 1.10.2010, the average AICPI is 4033.

In the pre revised scales, DA is calculated as under

Base points - 1708

Enhanced points - 4033-1708 = 2325

DA = Enhanced points/base points x 100 = 2325/1708x100 = 136.1%

In the revised scale, DA will be as under

Base points - 2884

Enhanced points - 4033-2884 = 1149

DA = Enhanced points/base points x 100 = 1149/2884x100 = 39.8%

I don't know what is load factor. Please explain.

Abbas.P.S

From India, Bangalore
ajeetvarma50
15

Dear Abbas,
Thanks for valuable information. As regard to "Load Factor", it is submitted that it is an additional burden in the new pay scales, to be brone by the organisation. For example, if my pay in the pre-revised scale is Rs. 100 and DA is Rs. 40. After merging certain portion of DA in the pre revised pay say Rs. 30/- the total comes to Rs. 130 in the revised pay. On this Rs. 130/- DA of balance Rs. 10 shall be paid. This is not a revision of the pay scale. Now organisation add say Rs. 70 in the scale which takes your pay to Rs. 200. Now on Rs. 200 pay, balance DA will be calculated. This Rs. 70 is an additional burden which is to be borne by the oganisation. Thus, it can be said that additional burden arising on account of revised pay scale is called "Load Factor". I think, it is clear now.

From India, Mumbai
abbasiti
517

Dear Ajeet Kumar, I feel that the Load Factor is equivalent to fitment benefit as cited above by me. Abbas.P.S
From India, Bangalore
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