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Dearness allowances and dearness reliefs which were lifted up by 4% last month now have been put on hold by a Government order. The strain on Government finances amid the ongoing coronavirus pandemic and resulting crisis has propelled the centre to take such a decision. The government employees, public sector employees and pensioners are not going to get additional hike in dearness allowances till July next year. Finance Ministery sources on Thursday confirmed that no DA increment for Govt employees and pensioners till July next year, the decision is taken in reviewing current situation amid Covid19 pandemic.
Earlier the Finance ministry in March had announced a 4% increase in dearness allowance. Dearness Allowance and Dearness Relief are granted to serving employees and pensioners of the Central Government respectively each year with effect from 1st January and 1st July and normally paid in March and September, respectively, Union Minister Prakash Javedkar had stated. In the light of the current situation and extended lockdown along with social distancing norms, the government has decided not to introduce the hike till July next year.
Addl installment of Dearness Allowance (DA) payable to central govt employees & Dearness Relief (DR) to central govt pensioners, due from 1st Jan, 2020 shall not be paid. Addl installments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid. However, Dearness Allowance and Dearness Relief at current rates will continue to be paid, said Ministry of Finance
The government cleared that dearness allowance will be given to the government employees at current rates but no additional amount will be given due from January 2020. There are at least 50 lakh government employees and 65 lakh pensioners. By not going ahead with the proposed hike in dearness allowances last month, the government would save Rs.37,500 crores for the next two years.
In view of the crisis arising out of Covid-19, it has been decided that the additional installment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1st January, 2020 shall not be paid. Additional installments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid, the Ministry of Finance said.
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Addl installment of Dearness Allowance (DA) payable to central govt employees & Dearness Relief (DR) to central govt pensioners, due from 1st Jan, 2020 shall not be paid. Addl installments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid: Ministry of Finance (1/2) pic.twitter.com/j5SsuhYkko— ANI (@ANI) April 23, 2020
The Centre also said, As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from 1st July 2021 is taken by the Government the rates of Dearness allowance and Dearness relief effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from July 1, 2021. No arrears from the period from 1st January 2020 to 30 June 2021 will be paid.