It appears that good fortune is knocking at the doorstep of central government employees as the hike in Dearness Allowance is likely this July.
This hike could make the purses of central government employees fatter by Rs 40,000 as the report suggests.
DA Hike 5% Or 6%?
It looks like central employees will likely get a significant DA hike of 5%, according to the All-India Consumer Price Index (AICPI) data so far this year.
The number holds a significance as it is up by a percentage from the earlier expected 4% hike.
Not only that, if the AICPI data for May remains on an upward trend then this number may well increase to 6%, as per report.
So, with the expected 5% hike, DA which currently stands at 34% after the 3% hike in January this year, will reach upto 39%.
And if later happens then with 6% hike, it will be a tremendous boost amid the rising inflation in India and globally.
This kind of hike would also mean an increase of up to Rs 3,400 per month or a little over Rs 40,000 annually on the basis of the basic salary of employees.
DA Hike In Past
With this hike, lakhs of central government employees are likely to see an increase in their dearness allowance (DA) next month in July 2022.
Generally, the Dearness allowance percentage is reviewed and re-fixed/ increased by the government twice every year on January 1 and July 1.
And its announcement usually comes during March and September.
Earlier the hike in DA for central employees was halted by the Finance Ministry due to the pandemic for a year and a half between January of 2020 and June 2021.
After that, it was again initiated in July 2021 when employees saw their DA hiked from earlier 17% to 28%.
Further, the next hike in October took DA to 31% followed by the January hike, after which it now stands at 34%.
Pending DA Arrears In July
In addition to DA hike, the employees also may receive 18-month-old arrears and interest rate for Provident Fund in July this year, as per the report.
As per the EPFO and the Central Board of Trustees suggestion, an annual rate of interest of 8.10 percent to be credited on EPF accounts of the PF subscribers for the fiscal year 2021-22.