Govt sanctions DA to staff  with effect from July 2018

VIJAYAWADA: The State government on Wednesday issued orders sanctioning Dearness Allowance (DA) to the State government employees from 27.248 per cent to 30.392 percent of the basic pay with effect from July 1, 2018. The DA will be paid with the salary of January, 2021, onwards. The DA arrears from July 1, 2018 to December 31, 2020 will be credited to the General Provident Fund Account of the respective employees in three equal instalments from January 2021 salary onwards.

In case of the employees, who retired from service between July 1, 2018 and December 31, 2020 and those who are due to retire on or before December 31, 2020, the DA arrears will be paid in cash as the employee due for retirement on superannuation is exempted from making any subscription to the General Provident Fund during the last four months of service.

For the employees covered under Contributory Pension Scheme (CPS), the DA arrears will be paid in three equal instalments from January 2021 salary onwards. Ten per cent of the arrears shall be credited to the PRAN accounts of the individuals along with the government share and the remaining 90 per cent will be credited to the employees’ salary accounts. In the event of death of any employee before issuing these orders, the legal heir(s) will be entitled to the DA arrears in cash.

The government also decided to release the balance DA instalments in a time-bound manner and ordered that the 2nd DA (which is due from January 1, 2019) will be released from the July 2021 salary and the 3rd DA (which is due from July 1, 2019) will be released from January, 2022 salary onwards.

Instructions for the release of the 2nd DA will be issued in June 2021 and for 3rd DA, in December 2021.