Recently, the government has given big relief to central employees on the inflation front. The Employee Dear Allowance (DA) has been increased by 11 per cent. Now the central government employee gets 28% of the monthly allowance. With this decision of the government, the amount of future funds ie PF and employee’s gratuity will also increase.
How does it grow? The PF or Gratuity amount is part of the basic pay and DA. With the increase in the DA of employees, the PF share and the central employee’s gratuity will also increase. Let us tell you that an employee’s contribution to a PF fund is 12%. As the base salary and DA increase, so does the amount of PF contributions. The calculation of the central employees’ gratuity amount is also done on this basis.
Pending: The central government will increase the DA by 11 percent with effect from July 1, 2021. This means that because of corona last year, the government has banned the DA issued to employees, who are not entitled to dues.
Understand how much compensation and salary available to central employees due to DA increases
Pensioners are also compensated for: Let us tell you that the central government has also increased dear compensation, which means that the DR for pensioners is just 11 percent. Since July 1, 2021, the standard of dear compensation has passed. About 63 lakh pensioners are expected to benefit from the government’s decision.