Central government to increase DA for government employees

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New Delhi, 20/4 (AO Bureau)The central government has announced DA reinstatement for the 52 lakh employees of the country. After this step of the government, there will be a big increase in the salary of the central employees of the country. According to the announcement of the Central Government, from 1 July 2021, the DA benefit of Central Government employees is going to be restored. According to the All India Consumer Price Index (AICPI) data release, between January and June 2021, at least DA can be increased by 4 percent.

After the reinstatement of DA, the DA of central employees can increase from 17 percent to 28 percent. This includes a 3 percent increase in DA from January to June 2020, a 4 percent increase from July to December 2020, and a 4 percent increase from January to June 2021.

How much will your salary increase?
As the Center has announced to give all the three pending DA installments from 1 July 2021. Explain that due to the Coronavirus epidemic, the government had banned the DA. Increasing DA will also increase DR in the same proportion. Dearness Relief (DR) of retired central government employees will also be restored due to an increase in dearness allowance.

There will be a change in PF and gratuity
The potential DA hike will also affect the central government employee’s monthly PF, gratuity contribution. Explain that the contribution of GCF’s PF and gratuity is calculated on the basis of basic salary plus DA. DA is going to increase from 1 July 2021, the contribution of an employee’s monthly PF and gratuity will also be affected. This means that more money will accumulate in retirement-oriented funds like PF and gratuity.

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