1
FRIDAY, APRIL 4, 1975
QUARTERLY CHANGE IN COST OF LIVING ALLOWANCE
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A CONSIDERABLE DROP IN THE COST OF LIVING DURING THE QUARTER ENDING FEBRUARY HAS RESULTED IN A REDUCTION IN THE COST OF LIVING ALLOWANCE (COLA) TO BE PAID TO CERTAIN GOVERNMENT STAFF.
BASED ON THE AVERAGE OF THE MODIFIED CONSUMER PRICE INDEX FOR DECEMBER 1974, JANUARY AND FEBRUARY 1975, THERE HAS BEEN A DROP IN THE COST OF LIVING OF 7.7 POINTS. AS A RESULT THE ALLOWANCE WHICH STOOD AT $60 A MONTH FOR THE PAST THREE MONTHS WILL NOW BE $30 A MONTH BEGINNING FROM APRIL 1.
COLA IS PAID TO ABOUT 40,000 STAFF MAINLY LABOURERS AND TRADESMEN, BUT ALSO INCLUDING MESSENGERS AND DRIVERS, AMONG OTHERS. THE ALLOWANCE IS NOT PAID TO THE REST OF THE CIVIL SERVICE THOSE ON THE MASTER PAY SCALE, DISCIPLINED SERVICES PAY SCALES AND DIRECTORATE SCALES.
A GOVERNMENT SPOKESMAN EXPLAINED THAT THE COST OF LIVING ALLOWANCE SCHEME VARIES WITH THE COST OF LIVING AS MEASURED BY THE MODIFIED CONSUMER PRICE INDEX.
IT IS ASSESSED QUARTERLY WITH EFFECT FROM JANUARY 1, APRIL 1, JULY 1 AND OCTOBER 1 EACH YEAR. BECAUSE OF THE TIME NEEDED TO PREPARE THE INDEX THERE IS ALWAYS A TIME LAG OF ONE MONTH ON WHICH THE NEW QUARTERLY ALLOWANCE IS CALCULATED.
FOR INSTANCE, THE SPOKESMAN SAID, THE AMOUNT OF ALLOWANCE PAID DURING THE QUARTER BEGINNING IN APRIL DEPENDS ON THE LEVEL OF PRICES AS MEASURED BY THE INDEX DURING THE MONTHS OF DECEMBER) JANUARY AND FEBRUARY. FOR THE JULY QUARTER THE ALLOWANCE PAYABLE IS BASED ON THE INDEX FOR MARCH, APRIL AND MAY.
THE SPOKESMAN SAID THAT THE AMOUNT OF ALLOWANCE IS DETERMINED BY SET LEVELS OF THE MODIFIED CONSUMER PRICE INDEX.
THESE ARE :
MCP 1
COLA (MONTHLY)
180
184
NIL
185
189
$15
190
194
$30
195 - 199
$45
200 - 204
$60
THE PLATFOE ...............