7th pay commission: 3 big bonanza coming in July: 5% DA hike, 18-months arrear, PF interest rate

The central government may hear some big news next month pertaining to hike in dearness allowance, crediting of PF interest rate and update on 18-months DA arrears. Here is all you want to know.

New Delhi: 7th Pay Commission Latest update-- The central employees may be up for a Triple bonanza in the month of July. If media reports are to be believed, the central government employees may get to hear 3 big news next month--one regarding hike in Dearness Allowance (DA), second regarding the payment 18-months DA arrear, and third regarding the interest on Provident Fund (PF).

5% DA hike likely to be announced in July

The recent All-India CPI-IW data has once again ignited hopes for a handsome amount of DA hike in the month of July. Lakhs of central government employees waiting for announcement on hike in Dearness Allowance (DA) have a brighter hope owing to the latest All-India CPI-IW fitures. The April month's AICP Index, which is a crucial factor in determining the DA, has led to speculation on the media regarding the high probability of DA increase for the central government employees in the next month. Government may bring in some more good news for the employees in the month of July. If latest media reports are to be believed, there could be a five percent hike in DA in July. This means the total DA could reach upo 39 percent. Previously reports were stating that there could be a 4 percent of DA hike. However April AICP Index indicate at a slight higher percentage hike.

18 months-pending Dearness allowance (DA) arrears 

The reports on payment of 18 months-pending Dearness allowance (DA) arrears has once again gained steam. As per fresh reports, the issue regarding payment of DA arrears of 18 months from January 2020 to June 2021 might be taken up soon. The Central government employees should not lose hope on getting Rs 2 lakh pending arrears in their account at one go. The quantum of DA arrear would depend on the pay band and structure of the employees.

Provident Fund Interest transfer

The Central Board of Trustees, EPF had recommended 8.10% annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2021-22. The interest rate was officially notified in the government gazette following which EPFO would soon start to credit the rate of interest into its subscribers’ accounts. EPFO announces the PF interest rate every year.