7th Pay Commission: The central government recently gave a big bonus to the salaried class. Following this, it is said that the central government will increase the dearness allowance for central government employees and pensioners in March.
7th Pay Commission: Are you a central government employee? Then we have some important news for you. The festival of Holi will be celebrated in March. Before that, central government employees, pensioners and EPFO account holders can get two significant benefits. You can find out about them in this post.
Central Government Employees: Important update for Central Government Employees
The central government recently gave a big gift to the salaried class. In the budget presented on 1st of this month, the tax-exempt income limit was increased to 12 lakhs. Following this, the central government is said to be increasing the dearness allowance for central government employees and pensioners in March.
Pensioners: Pension hike for pensioners too
Whenever the dearness allowance of central government employees increases, the dearness relief of pensioners also increases. In that sense, there is good news waiting for pensioners in March.
EPF Members: Interest rate hike for EPF members
Apart from central government employees and pensioners, there is good news for EPF subscribers as well. Reports also suggest that the government may increase the interest rates on PF deposits for the financial year 2024-25 in March.
Dearness Allowance: How much will the dearness allowance increase?
It is being said that the Modi government may increase the dearness allowance and relief for central government employees and pensioners by 3% before Holi. If that happens, the dearness allowance for central government employees and dearness relief for pensioners will increase to 56%. This change will be made under the recommendations of the 7th Pay Commission. This increase will benefit about 48 lakh central government employees and 69 lakh pensioners.
EPFO Interest Rate: EPFO Interest Rate
Additionally, the government is now likely to increase the interest rate on PF deposits for the financial year 2024-25. An important meeting is scheduled on February 28 to discuss this.
DA Hike: DA hike twice a year
The central government usually reviews the rates of dearness allowance and dearness relief for its employees and pensioners twice a year, based on the half-yearly data of the All India Consumer Price Index. These changes usually come into effect from January and July. Generally, notifications for these are issued in the months of March and October.
AICPI Index: AICPI Index Numbers
Based on the AICPI index data from July 2024 to December 2024, the DA for January 2025 will increase. Looking at the figures from July to November, the AICPI index has reached 144.5, with a DA score of 55.05%. This indicates a guaranteed increase of 3% in DA. The new rates are expected to be released around the Holi festival.
DA Arrears: DA Arrears
Since the Dearness Allowance hike will come into effect in January 2025, employees will also receive two months of DA arrears from January onwards.
If the dearness allowance increases by 3%, workers earning a minimum wage of Rs 18,000 will get an increase of Rs 540, while those in higher positions earning Rs 2,50,000 will get an additional Rs 7,500. Pensioners will also benefit from this, as their pension is likely to increase by Rs 270 to reach Rs 3,750.
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