A greater Dearness Allowance (DA) increase may be announced for the lakhs of central government employees who have been waiting for this since a long time. These Government employees may get a hike in their dearness allowance (DA) which will be announced this month, i.e. in July 2022.
According to the most recent media sources, the Dearness Allowance may increase by 6% in July. This implies that the overall DA could be as high as 40%.
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.
1: Hike in DA of 5% – 6% likely in July
As per the All-India Consumer Price Index (AICPI) data this year, the central government employees will receive a large DA boost of 5%. This percentage is more than the previously predicted 4% increase. If the AICPI data for May will rise, then this figure might rise to 6%.
With the predicted 5% increase, DA, which is currently at 34% following a 3% increase in January of this year, would rise to 39%. If this rises to 6%, it will be a huge boost in the face of growing inflation in India and around the world. On the basis of the base income of employees, such a raise would represent a rise of up to Rs 3,400 per month, or little more than Rs 40,000 annually.
2: 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.
3: 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.