LUCKNOW: The state government will start payment of dearness allowance (DA) to government employees at the rate of 28% with effect from July 1, 2021
The decision to increase the DA rate from 17% to 28%, in line with the Centre’s decision, was announced on July 28. A revision of the DA was withheld in 2020 due to the Covid-19 pandemic. DA is increased twice annually, on January 1 and July 1, but in April 2020, the Centre and then the state announced that there would be no revision in DA till July 1, 2021.
The order issued by the state government on Tuesday said that the DA at the rate of 28% will be paid to employees for the month of August in the September salary. The arrears for July 2021 will be transferred to the employee’s provident fund account and cannot be withdrawn till July 2022.
For those who are members of the National Pension Scheme, 10% of the amount due from July 1 to July 31, 2021, will be deposited in the NPS accounts of Tier-1 account holders while 14% will be deposited by the government. The remaining amount will be given to the employee as national saving certificate.
Those who retired before the decision was announced or those who are to retire within the next six months, will be paid dues in cash.
The move will benefit around 16 lakh government employees and 12 lakh pensioners, who had been receiving DA at 17% since January 2020.
