7th Pay Commission: There is good news for the government employees. According to media reports government employees are going to get 3 big gifts under 7th Pay Commission.
The first one is Dearness Allowance (DA) of the employees, Second gift, 18 months DA arrears and the third gift is related to the Provident Fund (PF).
7th Pay Commission: DA Revised Twice A Year
Employees of the central government have their Dearness Allowance is revised twice a year. The first is given from January to June, while the second comes from July to December.In April 2022, the All-India CPI-IW rose by 1.7 points to 127.7.
According to data from the Ministry of Labour & Employment, the 1-month percentage change climbed by 1.35 percent compared to the 0.42 percent increase between the same months a year before. The DA would undoubtedly exceed expectations if the AICPI statistics for May climb. In March, the first dearness allowance rises for the year 2022 was announced. The AICPI value in December 2021 was 125.4.
7th Pay Commission: dearness allowance will increase!
The DA is revised based on the changes in the All India Consumer Price Index (AICPI). Now, as the AICPI is prevailing high, the chances of government employees getting a raise in dearness allowance is also high. The retail inflation in May stood at 7.04 per cent, which is above the RBI’s comfort level of 2-6 per cent.
According to lates media reports, there may be an increase of 6 percent in the Dearness Allowance (DA) of Central employees and Dearness Relief (DR) of pensioners in August. If there is an increase of 6 percent in DA, then your salary will increase.
Now, after another six per cent hike, the dearness allowance for the government employees will increase from 34% to 40%.
7th Pay Commission: Pending DA Arrears
Apart from DA hike, it is also being reported that the settlement of 18-month-old Dearness Allowance (DA) arrears will also be released in July this year. The employees of the Central Government should not give up hope of receiving Rs 2 lakh in pending arrears in a single payment.
7th Pay Commission: Provident Fund Interest Rate
The EPFO and the Central Board of Trustees have suggested 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. It is also reported that the PF interest rate will be credited to the accounts of the government employees in July 2022.