7th Pay Commission: 3 Big Hikes Coming This July, 5% DA Hike, 18 Month DA Arrears, and PF Interest

The latest news from the 7th Pay Commission is that central personnel may be in line for a triple bonus in July. According to press reports, central government employees may hear three major announcements next month: one addressing a rise in Dearness Allowance (DA), another regarding the payment of an 18-month DA arrear, and a third regarding interest on Provident Fund (PF).

The new All-India CPI-IW report has revived anticipation for a sizable DA hike in July. The latest All-India CPI-IW figures have given thousands of central government employees hope that an increase in Dearness Allowance (DA) will be announced soon.

The AICP Index for April, which is a key factor in setting the DA, has sparked speculation in the media about a high likelihood of a DA hike for central government employees in the coming month. In the month of July, the government may provide more good news to the employees. According to recent media reports, DA could increase by 5% in July.

18 Months Dearness Allowances Arrears

The reports regarding the payment of 18-month-old Dearness Allowance (DA) arrears have resurfaced. According to recent reports, the issue of 18-month DA arrears payment from January 2020 to June 2021 may be addressed soon. Employees of the Central Government should not give up hope of receiving Rs 2 lakh in pending arrears in one go. The amount of DA arrears is decided by the employees' pay band and structure.

Provident Fund Interest to be Transferred

For the financial year 2021-22, the EPF Central Board of Trustees suggested an annual rate of interest of 8.10 percent to be credited on EPF accumulations in members' accounts.

Following the official notification of the interest rate in the government gazette, EPFO will begin crediting the rate of interest into the accounts of its subscribers. Every year, the EPFO announces the PF interest rate.