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7th Pay Commission: Employees Provident Fund Organization (EPFO) on Saturday gave a big gift to PF account holders and announced increase in interest rates, now it has been increased to 8.25 percent. After the increase in interest on PF in the election year, now an increase in Dearness Allowance (DA Hike) is expected soon. If reports are to be believed, the government may take a major decision on this in March 2024. If this happens then the DA given to central employees will be 50 percent.
Interest on PF increased, expectation of DA increased
The Central Board of Trustees (CBT) of EPFO has announced the new interest rate for the Employees Provident Fund (EPF) account for the financial year 2023-24. Giving a gift to about 7 crore employees of the country, EPFO has increased it to 8.25 percent. According to PTI, PF account holders will now get 0.10 percent more interest than before. On March 28 last year, EPFO had announced an interest rate of 8.15 percent for Employees' Provident Fund (EPF) accounts for 2022-23. Due to increase in interest rate on PF, the expectation of DA increase among central employees has also increased.
4% DA increase expected in March
The government increases dearness allowance of employees twice a year and the DA hike for January-June half year is expected to be announced in March 2024. If reports are to be believed, this time the government may give a gift of 4 percent DA. The salary hike for central employees may be announced next month before the elections.
Let us tell you here that this expectation is being expressed on the basis of various reports, whereas no official comment has been made by the government in this regard yet. But if there is an increase of 4 percent in DA then there will be a bumper increase in the salary of the employees. At present the DA of central employees is 46 percent, which can be increased up to 50 percent.
Along with DA, increase in HRA is also possible.
On one hand, a 4 percent increase in dearness allowance of central employees is being expected and if this happens, then the employees will get its benefit from January 1, 2024. Along with this, when dearness allowance reaches 50 percent, it may also increase. The house rent allowance given to employees should be increased. In July 2021, when DA crossed 25 percent, an increase of 3 percent was seen in HRA and it was increased to 27 percent. In such a situation, once again when DA becomes 50 percent, HRA is expected to increase and if reports are to be believed, it can be increased up to 30 percent.
Revision takes place twice a year
The government revises the dearness allowance given to central employees twice a year. Whose benefits are given to them from 1st January and 1st July. Talking about its calculation, Dearness Allowance or DA is an important part of the employees' salary and the increase in it has a direct impact on the salary received by the employees. It is determined on the basis of inflation rate.
The higher the inflation, the greater the increase in DA of the employees is expected. The all-India CPI-IW for December 2023 fell 0.3 points to 138.8. On this basis, it is being estimated that the government may increase DA by 4 percent.