VIJAYAWADA: Here is some good news for the State government employees. The government gave approval for the payment of Dearness Allowance (DA) at 5.24% from January, 2022. An order to this effect was released by the Finance Department on Monday.
Payment of DA to the employees is pending from July 1, 2019. While DA will be paid in cash with salary of January, 2022, the arrears on accounts of payment of DA from July, 2019 to December 31, 2021 will be credited to the General Provident Fund (GPF) account of the employees in three equal instalments from January, 2022 salaries.
In respect of employees appointed on or after September 1, 2004 and governed by the Contributory Pension Scheme (CPS), the DA arrears payable for the period from July 1, 2019 to December 31, 2021 will be paid in cash in three equal instalments from January, 2022 salaries onwards.
In all, 10% of the arrears will be credited to the PRAN accounts of the individuals along with government share and the remaining 90 per cent would be credited to the employee’ salary accounts, the government order said.
The employees retired from service between July 1, 2019 and June 30, 2022 will be paid the arrears of DA in cash.
Legal heir
In the event of death of any employees before the issue of these orders, the legal heir should be entitled to the arrears of DA in cash.