Govt hikes DA for PSU executives, disallows arrears for ‘freezing of DA’ period

• The increased DA of 23.2 percent will be applicable in the case of PSU employees who avail 2017 pay scales
• For those who avail 2007 pay scales, DA has been hiked from 159.9 percent to 170.5 percent

New Delhi: The government has increased the Dearness Allowance (DA) for PSU executives and non-unionised supervisors from 18.4 percent to 23.2 percent, an official order released by the Department of Public Enterprises (DPE) said. The increased DA will be effective from July 1. "Accordingly, the rate of DA to the executives and non-unionised supervisors of CPSEs w.e.f. 01.07.2021 is increased from 18.4 percent to 23.2 percent," said the DPE order dated August 2. The nearly 5 percent hike comes after a long DA freeze, which was put in place by the Centre from October 1, 2020 until June 30. 

The increased DA of 23.2 percent will be applicable in the case of PSU employees who avail 2017 pay scales.

DA hike for 2007 pay scale PSU executives

In a separate order released on August 2, the DPE said that for PSU executives and non-unionised supervisors who avail 2007 pay scales, DA has been increased from 159.9 percent to 170.5 percent, with effect from July 1. "The above rate of DA i.e. 170.5 percent would be applicable in the case of IDA employees who have been allowed revised pay scales (2007) as per DPE O.Ms. dated 26.11.2008, 09.02.2009 & 02.04.2009," said the DPE.

No arrears for DA freeze period: DPE

In both cases, no arrears would be allowed for the DA freeze period. "The increase subsumes the additional installments arising on 01.10.2020, 01.01.2021, and 01.04.2021. The rate of Dearness Allowance for the period from 01.10.2020 till 30.06.2021 shall remain at 18.4 percent," said the DPE. 

For those PSU executives and officers who avail the 2007 pay scale, actual DA rates during the freezing of DA period (01.10.2020 to 30.06.2021) is 159.9 percent, said the DPE.

Background

On November 19, 2020, the DPE had announced the freezing of additional dearness allowance (DA) for executives and non-unionised supervisors of PSUs drawing salaries under certain pay scales till June 30, 2021. "In view of the crisis arising out of COVID-19, it has been decided that additional installment of dearness allowance payable to employees of CPSEs drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines, due from October 1, 2020, shall not be paid," the DPE said.

(PSU Watch– India's Business News center that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)