7th Pay Commission Big Update: Central employees can make three big announcements in the month of July. If media reports are to be believed, then central government employees can get triple bonanza in this month – one regarding increase in dearness allowance (DA), the other for payment of 18 months DA arrears (18). -months DA arrear), and third in respect of interest on Provident Fund PF.
6 percent DA hike announcement likely
According to the latest media reports, there may be an increase of six percent in dearness allowance in July. This means that the total DA can reach up to 40 per cent. According to several media reports, the government may announce a hike in Dearness Allowance on July 31 (DA hike on July 31). These are only preliminary speculations, and employees will have to wait for an official statement on the same. As per the latest reports of the ministry, the AICPI figures for May are at 129, which is definitely indicating that the DA will be higher than expected, i.e. 6 per cent, many media websites are saying.
18 months-pending Dearness allowance (DA) arrears
There is news in the media that the government can give the outstanding DA of the accounts of lakhs of employees in August. In fact, the central employees are continuously demanding the withholding of DA from the government from January 2020 to June 2021. Earlier there were reports many times that the government is going to put 2 lakh rupees of the outstanding DA in the account of the employees, but the government denied it every time and the wait for the employees continues even today. Now it is being told that the government is preparing to put Rs 1.50 lakh in a lump sum in the account of central employees.
The news of 18 months-pending Dearness allowance (DA) arrears payment has once again gained momentum. As per the latest reports, the issue of payment of DA arrears of 18 months from January 2020 to June 2021 is likely to be considered soon. Central government employees should not lose hope of getting arrears of Rs 1.5 lakh in their account in one go. The amount of DA arrear will depend on the pay band and structure of the employees.
A meeting of the Joint Consultative Mechanism (JSM) of the Department of Personnel and Training and Department of Expenditure (DOPT) is to be held. In this, the DA arrears payment of the employees will also be discussed. An announcement on the increase in DA is also expected in this meeting. Let us tell you that at present, DA is being paid at the rate of 34 per cent, but according to AICPI data, there may be an increase of 5 to 6 per cent (5 to 6% DA in July) in July.
Significantly, due to Covid, the government had banned the DA of 18 months of central employees. After this, the DA of the employees was increased many times but till now the arrears have not been received. The employees are hopeful that the government will clear their dues soon. However, till now there has been no official statement from the government on the payment and hike of the outstanding DA. Let us tell you that the employees will get DA arrears according to their salary band.
Provident Fund Interest transfer
The Central Board of Trustees, EPF had recommended an interest rate of 8.10% per annum to be credited on EPF accumulations in the accounts of members for the financial year 2021-22. The EPFO will soon start crediting the interest rate to the accounts of its subscribers after the interest rate was officially notified in the official gazette. EPFO announces PF interest rate every year.
Central government employees can once again get good news. Along with the increase in DA this month, the government can also take a decision on the outstanding DA of 18 months (18 Months DA Arrear). Actually, the central employees have been demanding the payment of their due DA from the government for a long time.
