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DPE corrects previous DA order, hikes allowance for PSU employees from Oct 1, 2021

The DPE has revised the Dearness Allowance (DA) for PSU employees, effective from July 1, 2021, and has also announced a hike which will be effective from October 1, 2021
DPE corrects previous DA order, hikes allowance for PSU employees from Oct 1, 2021
DPE corrects previous DA order, hikes allowance for PSU employees from Oct 1, 2021
  • For 2017 pay scale, DA rate has been revised to 24.7 percent, with effect from (wef) July 1, 2021 and hiked to 27.2 percent from October 1, 2021
  • For 2007 pay scale, the DA rate effective from July 1, 2021 is 173.8 percent and from October 1, 2021 is 179.3 percent

New Delhi: Superseding a previous order, the Department of Public Enterprises (DPE) has revised the Dearness Allowance (DA) for PSU employees, effective from July 1, 2021, and has also announced a hike which will be effective from October 1, 2021. The revision of the previous DA order and the hike come ahead of festivities and provides much-needed respite to PSU employees. In a notification issued on Wednesday, the DPE said, “… the rate of DA 23.2 percent notified vide OM No. W-02/003912017-GL-II/2l, dated 02.08.2021, which was taken based on the rate due from 0l.04.2021, has been superseded by enhanced DA rate of 24.7 percent payable from 01.07.2021 (for 2017 pay scale),” said the order.

In August this year, the DPE had revised DA rates for PSU employees to 23.2 percent, 170.5 percent and 356.7 percent for 2017 pay scale, 2007 pay scale and 1997 pay scale, respectively, with effect from July 1, 2021. However, the matter had drawn ire from PSU employees’ associations, like the National Confederation of Officers’ Association (NCOA), as they had contended that the actual rate effective from July 1, 2021 is 24.6 percent for 2017 pay scale, 173.6 percent for 2007 pay scale and 361.9 percent for 1997 pay scale. They had also claimed that the order had created a disparity between PSU executives and non-executives as DA was not frozen for non-executives. “Since DA for non-executives was not frozen, the same has already been implemented at 24.6 percent for 2017 pay scale, 173.6 percent for 2007 pay scale and 361.9 percent for 1997 pay scale of workmen,” the NCOA had said in a letter to the DPE at the time.

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NCOA withdraws dharna against DA revision order

The NCOA has now withdrawn its call for a dharna as the DPE has issued a fresh order, correcting the DA payable to PSU employees of all categories. The association had earlier threatened to hold a protest on October 28 if the DPE failed to address their grievances. Speaking to PSU Watch, NCOA president Alok Roy said, “In view of corrective action taken by DPE through revised orders for calculations of gratuity and leave encashment for officers retired during 01.10.2021 to 30.06.2021, in line with that of Central government employees, and restoration of the IDA wef 01.07.2021 to actual level, NCOA has withdrawn the protest dharna scheduled on October 28.”

Revised DA rates for PSU employees

For 2017 pay scale, DA rate has been revised to 24.7 percent, with effect from (wef) July 1, 2021 and hiked to 27.2 percent from October 1, 2021. For 2007 pay scale, the DA rate effective from July 1, 2021 is 173.8 percent and from October 1, 2021 is 179.3 percent. For 1997 pay scale, DA rate due and payable from July 1, 2021 is 362.2 percent and DA rate payable from October 1, 2021 is 371.5 percent.

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