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Big news for government officials! PF’s contribution may change from July.

The government has announced the Dearness Allowance (DA) of central government officials. The DA of the central civil servant will be suspended until June 2021. While announcing the decision, the center said they would continue to announce DA on time, but that would not be added to the salaries of central civil servants until June 2021.

However, DA’s three installments (January-June 2020, July-December 2020, January-June 2021) have been restored and added to CGS salaries, and in the long run monthly The PF contribution or PF balance will increase further. period. how?

The monthly Provident Fund (PF) contribution is calculated based on the central government’s base salary and DA. A DA increase will lead to an increase in monthly PF contributions.

According to the latest data from AICPI (All India Consumer Price Index), 4% DA increase from January to June 2021, 3% DA from January to June 2020, July to 12 2020 It is expected that 4% DA will be added by the month. The existing DA of central government employees is currently 17%. If the DA does not delay any further, it can rise from 17% to 28%.

Rise with DA

As the DA rises from 17% to 28%, the PF contribution will increase further and the monthly PF contribution will be determined based on the base salary and DA, so the employee’s monthly salary will also change.

Pensioners getting DR

The center has frozen both DA and DR until June 2021, so 520,000 rupees of central government officials and 580,000 rupees of retired central government officials or pensioners will also recover their Dearness Relief (DR) benefits. You will receive it.

The center will provide DR benefits to retired central government officials and help them overcome the heat of inflation. In this case, the DR of the pensioner will automatically increase when the DA increase is announced.

Big news for government officials! PF’s contribution may change from July.

Source link Big news for government officials! PF’s contribution may change from July.

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