homepersonal finance News7th Pay Commission: UP increases Dearness Allowance to 28% for govt employees, pensioners

7th Pay Commission: UP increases Dearness Allowance to 28% for govt employees, pensioners

7th CPC: With this DA hike, the state government employees’ provident fund (PF) contribution will also increase

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By CNBC-TV18 Aug 20, 2021 12:14:21 PM IST (Updated)

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7th Pay Commission: UP increases Dearness Allowance to 28% for govt employees, pensioners
7th CPC:

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After a long wait, state government employees in Uttar Pradesh will get an increment in Dearness Allowance (DA). The Yogi Adityanath government on Thursday announced a DA hike from the existing 17 percent to 28 percent for these employees. The increment in the Dearness Allowance will benefit nearly 28 lakh state government employees and pensioners.

The government will also enhance honorarium given to Anganwadi Workers/Anganwadi Helpers. The new DA rates will be applicable from July 1, 2021. With this DA hike, employees’ provident fund (PF) contribution will also increase.
“State government has increased the dearness allowance of govt employees to 28% (as per the Centre's mandate) with the effect from July 2021. Government will enhanced honorarium to Anganwadi Workers/Anganwadi Helpers (AWWs/AWHs),” ANI tweeted quoting Adityanath as saying in state Assembly.
Earlier the state government had said that it would not increase DA from April 2020 to July 1, 2021, due to financial constraints as COVID pandemic spread across the country.
This move will cost the government Rs 6,500 crore a year.
The increment comes after the government at Centre last month increased DA from 17 percent to 28 percent, effective from July 1. The central government had postponed DA hike for its employees since January 1, 2020, due to COVID pandemic.
In recent weeks, several states have announced DA hikes, which include Assam, Bihar, Himachal Pradesh, Jharkhand, Haryana, and Assam.
The DA rate for the employees of government-run banks was also increased by 2.1 percent to 27.5 percent.

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