Here is a major update for those public employees who are waiting for a raise in pay and other improvements to their compensation. According to reports, the dearness allowance (DA) for thousands of central government employees may likely increase starting in July 2022. In addition to the DA increase, they may also receive provident fund interest and 18-month-old arrears.
Two times a year, in January and July, the Center releases DA for those working for the government. It is anticipated that the government may think about releasing the DA amount in July 2022 due to the rising inflation.
The DA increase is typically announced by the Center twice a year, in March and September. But after December 31, 2019, there was no rise in the DA amount for 1.5 years because of the coronavirus epidemic.
Provident Fund Interest Rate
For the fiscal year 2021–2022, the Central Board of Trustees and the EPFO have proposed a rate of interest of 8.10 percent to be credited annually to the EPF accounts of PF subscribers.
Additionally, it is said that in July 2022, government employees' accounts will receive the PF interest rate credit.
What about pending da arrears?
In addition to the DA increase, it is rumoured that the July release of this year would also include the payment of DA arrears dating back 18 months. The Central Government employees shouldn't give up on the possibility of obtaining the outstanding arrears of Rs 2 lakh in a single payment.
Will there be a hike of 5% in DA in July?
The central government employees would earn a significant DA rise of 5% this year, according to the All-India Consumer Price Index (AICPI) data.
This percentage is higher than the previously anticipated growth of 4%. This number could increase to 6% if the AICPI numbers for May increase.
