New Delhi: Employees’ Provident Fund Organization Employees’ Provident Fund Organization (EPFO) is going to give festive gifts to the employees before Diwali. Employees are going to get 3 big gifts soon in the festive season. The first gift is related to the Dearness Allowance (DA) of the employees, as it is expected to increase once again. The second gift, any result can come out on the talks on the ongoing DA arrears with the government. While the third gift is linked to the Provident Fund (PF). Let us tell you that PF EPFO can pay the interest of the financial year 2020-21 in the accounts of the members before Diwali even before Diwali.
DA may increase again
The announcement of an increase in Dearness Allowance (DA) for July 2021 has not been decided yet. The dearness allowance of 50 lakh employees (Central Govt Employees) and 61 lakh pensioners is going to increase from July 1. Meanwhile, the All India Consumer Price Index (AICPI) data for January-May 2021 shows that it may increase by up to 3 percent. In the same way, after increasing by 3 percent, dearness allowance will become 31 percent. The central government can announce to increase in DA around Diwali. They will get the benefit of this increase in the form of an increase in salary.
The decision will come soon on DA arrears
The matter of pending arrears has reached Prime Minister Narendra Modi for 18 months, on which the decision can come soon. Central employees are hopeful that they will get a dearness allowance before Diwali. It may be mentioned that the Finance Ministry had stopped the DA hike in May 2020 till 30 June 2021 due to the Kovid-19 epidemic.
Before Diwali, more than 6 crore account holders of the Employees’ Provident Fund Organization (EPFO) can get great news. 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.
31%- what will be the formula for DA
According to the 7th Pay Commission matrix, if the dearness allowance increases by 3 percent in June, then the total DA will become 31 percent. The level-1 salary range of central employees ranges from Rs 18,000 to Rs 56,900. Now on the basic salary of Rs 18,000, the total annual dearness allowance will be Rs 66,960. But talking about the difference, the annual increase in salary will be Rs 30,240.
Learn- How will the calculation be done?
- Basic salary of the employee Rs. 18,000
- New Dearness Allowance (31%) Rs.5580/month
- Dearness Allowance so far (17%) Rs.3060/month
- How much dearness allowance increased 5580-3060 = Rs.2520/month
- Increase in annual salary 2520X12 = Rs 30,240