After the Centre had increased the Dearness Allowance (DA) and Dearness Relief (DR) for its employees in July this year, they have another good news for the beneficiaries. Just before Diwali 2021, the Central government employees are all set to receive 3 big gifts.
The first one is related to the Dearness Allowance (DA) of the employees as it may increase. The second one is the ongoing talks with the government on DA arrears while the third gift is related to Provident Fund (PF). The interest on PF might get credited to the employee’s account before Diwali.
Increase in DA
The Dearness Allowance (DA) for July 2021 is not set yet but the All India Consumer Price Index (AICPI) data for January to May 2021 shows that it may increase by up to 3%. In this way, after increasing by 3%, DA will reach 31%. The central government can announce to increase in DA around Diwali.
Decision on negotiation on DA arrears
The matter of pending arrears for the past 18 months has now reached Prime Minister Narendra Modi, on which a decision can come soon. In such a situation, the Central employees hope that they will get a Dearness Allowance before Diwali. Notably, due to the COVID-19 pandemic, the Finance Ministry had stopped the DA hike in May 2020 till 30 June 2021.
PF interest money will also be available
More than 6 crore account holders of the Employees’ Provident Fund Organization (EPFO) can get a piece of good news before Diwali. Interest money can be transferred soon to the bank account of PF account holders. EPFO may soon announce the transfer of interest to the accounts of its subscribers for 2020-21.