One of the most successful models for describing the Portevin–Le Chatelier effect in engineering applications is the Kubin–Estrin–McCormick model (KEMC). In the present work, the influence of dynamic strain ageing on dynamic recovery due to dislocation annihilation is introduced in order to improve the KEMC model. This modification accounts for additional strain hardening rate due to limited dislocation annihilation by the diffusion of solute atoms and dislocation pinning at low strain rate and/or high temperature. The parameters associated with this novel formulation are identified based on tensile tests for a C–Mn steel at seven temperatures ranging from 20 °C to 350 °C. The validity of the model and the improvement compared to existing models are tested using 2D and 3D finite element simulations of the Portevin–Le Chatelier effect in tension.