On Wednesday, the Government of Uttar Pradesh announced to raise dearness allowance for all its state government employees from the current 28% to 31%. The revised increased rates shall be put into effect retrospectively from July 2021, as per the ANI news agency. So, now the DA/DR shall be 31 percent as against 28 percent currently.
Consequently, the salary of December that these state government employees will receive in January will be provided with a hiked DA/DR. Further, the remaining arrears payable from July to November will be distributed as cash/PF or as other savings letters, which shall be made clear when the mandate for the same is issued. From the latest hike in DA/DR rate, 16 lakh state government employees and 12 lakh pensioners would benefit.
Earlier in August, there was an increase of 11% in DA/DR. During that time there were expectations that the state government would also reveal the DA installment for July month before Diwali.
Notably because of the corona led economic disruption, the state government had asked to freeze 3 DA/DR for January 2020, July 2020 and January 2021. Accordingly, along with these 3 installments of DA/DR, the government shall pay DA/DR at an hiked rate of 31% from July 2021.