Chief Minister Y.S. Jagan Mohan Reddy has agreed to release the pending Dearness Allowance (DA) and Dearness Relief (DR) to government employees and pensioners, and directed the Finance Department to issue sanction orders.
A total of 4,49,000 employees and 3,57,000 pensioners would benefit from the government's decision.
The first pending DA/DR due from July 2018 will be paid along with January 2021 salaries/pensions payable on February 1 2021.
The DA/DR will be revised with effect from July 1, 2018. The additional expenditure to be incurred is around ₹86.41 crore per month and ₹1,037 crore per annum, according to an official release.
The second pending DA/DR due from January 2019 would be paid with July 2021 salaries/pensions payable on August 1, 2021. The additional expenditure entailed by this is ₹173 crore per month and ₹2,074 crore per annum.
The third pending DA/DR due from July 2019 would be paid with January 2022 salaries/pensions payable on February 1, 2022. The additional expenditure incurred would be around ₹317 crore per month and ₹3,802 crore per annum.
The arrears for the first DA/DR will be adjusted in three instalments February 2021 onward to GPF accounts of the OPS employees and will be paid in cash in three instalments to the CPS employees and pensioners from February 2021. The additional expenditure to be incurred would be around ₹2,592 crore.
Arrears for the second DA/DR would be adjusted in three instalments from August 2021 to the GPF accounts of OPS employees and the payments would be made in cash in three instalments to CPS employees and pensioners from August 2022. The additional expenditure to be incurred towards that woud be approximately ₹2,592 crore.
The arrears for the third DA/DR will be adjusted in five instalments from February 2022 to the GPF accounts of OPS employees and paid in cash in five instalments to the CPS employees and pensioners from February 2022. The additional expenditure being incurred would be around ₹4,320 crore.
The total additional expenditure to be incurred by the government on three DA/DR releases is around ₹3,802 crore per annum in addition to the arrears amounting to ₹9,504 crore.
