3 Big News For 35 Lakh Central Govt Employees Under 7th Pay Commission: Increased Salary, Increased Provident Fund Interest
Central govt employees may receive extra rewards in July.
If media reports are to be believed, there are 3 big developments that could happen next month.
First, regarding hike in Dearness Allowance (DA).
Second, regarding the payment of 18-months DA arrears.
Third, regarding the interest on Provident Fund (PF).
5% DA hike
Lakhs of central government employees are awaiting the announcement of a hike in DA.
Their hope is sparked by the latest All-India CPI-IW fixtures.
April’s AICP Index, which is a crucial factor in determining the DA, has led to speculation that a DA increase may take place next month.
If latest media reports are to be believed, there could be a five percent hike in DA in July.
This takes the total DA up to 39 percent.
Previously reports were statinga 4 percent hike.
However, the April AICP Index indicates a slightly higher percentage.
18 months-pending arrears
As per reports the issue regarding payment of DA arrears of 18 months from January 2020 to June 2021 might be taken up soon.
Once these are cleared, upto Rs 2 lakh pending arrears may show up in one’s account.
The quantum of the arrears will depend on the pay band and structure of the employees.
Provident Fund Interest transfer
The Central Board of Trustees, EPF had recommended 8.10% annual rate of interest to be credited on EPF accumulations for the financial year 2021-22.
The interest rate was officially notified in the government gazette following which EPFO would soon begin crediting the interest into its subscribers’ accounts.
EPFO announces the PF interest rate every year.