The government has brought big news for central employees in July. In June this year, the government is going to provide a huge amount in the form of a dearness allowance. Due to Kovid, the dearness allowance of Central Government employees has currently been stopped. This stay is till June 2021. While announcing this decision, the government had said that the dearness allowance will be announced from time to time, but it will not be added to the basic salary. However, it is clear that after the system is restored, all the 3 installments of (dearness allowance) are going to be added to the salary of the CJS. PF calculation is always done by adding salary and dearness allowance. Therefore, the increase in dearness allowance will also increase the PF balance.
If there is no increase in the dearness allowance being given to the central employees under the 7th Pay Commission, then there has been a huge jump in the dearness allowance of the central employees. Any employee can expect a 4% DA increase in June 2021. Apart from this, a dearness allowance of 3% from January to June 2020 and 4% from July to December is expected to be added by adding Central employees. The dearness allowance of the current central government is expected to be 17% to 28%.
How will PF benefit from dearness allowance: At the same time, we all know that some part of our salary plus dearness allowance is deducted from the provident fund. If the DA is 17% to 28%, then the PF contribution will also increase. In the long term, people will benefit.
Pensioners also benefit: Dearness allowance has been withheld for the last 1 year along with central employees as well as pensioners. In such a situation, if the dearness allowance is restored, then 58 lakh pensioners will be benefited. Retired Central Government employees also get the benefit of dearness allowance so that the rising inflation does not affect their pockets.
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