Holi 2025: Big Benefits for Central Employees & Pensioners – DA Hike & PF Interest Rate Update!
Before Holi, the central government can give two big good news to central employees, pensioners and EPFO account holders. According to reports, the government may announce an increase in the interest rates on dearness allowance (DA) and PF in March.
3% increase in dearness allowance possible
The Modi government may increase the dearness allowance (DA) and dearness relief (DR) of central employees and pensioners by 3% before Holi. After this increase, the new rates will be 56%. This revision will be done under the 7th Pay Commission, which will benefit 48 lakh employees and 69 lakh pensioners.
Every year the central government reviews the dearness allowance twice – in January and July. This time too, DA is likely to be increased from January 2025, which can be announced in March 2025. According to the data of the AICPI index, the DA score has reached 55.05% from July to November, from which it is being speculated that the government can announce a 3% increase.
There will be a direct impact on salary
If the government decides to increase DA by 3%, then the employees will get a direct increase in salary. For example:
Those whose basic salary is ₹ 18,000 will get ₹ 540 more per month.
Those whose salary is ₹ 2,50,000 will benefit by ₹ 7,500 per month.
If an employee is currently getting DA of ₹ 15,000 per month, it will increase to ₹ 15,450 per month.
Pensioners will also get direct benefit of this increase. Their pension may increase from ₹ 270 to ₹ 3,750.
Will EPFO account holders get the benefit?
There is also good news for employees and PF account holders associated with the Employees’ Provident Fund Organization (EPFO). A meeting of the Central Board of Trustees (CBT) has been called on 28 February 2025, in which the increase in interest rates on PF for the financial year 2024-25 will be discussed.
In the last meeting, the interest rate on PF for the financial year 2023-24 was fixed at 8.25%. This time there is every possibility of interest rate hike, which will benefit more than 6 crore PF account holders. The meeting will be attended by the Union Labor Minister, representatives of trade unions and employer organizations.
When will the announcement be made?
Announcement regarding dearness allowance and interest rates on PF is possible from the government before Holi. This will have a direct impact on crores of employees and pensioners. If you are also a government employee or PF account holder, then this news can be a relief for you.
Stay tuned for updates!
