Centre freezes DA, DR for staff

New Delhi  24.04.2020

The government on Thursday froze inflation-linked allowance for its 1.1 crore employees and pensioners, a move States are likely to replicate, helping save a combined Rs 1.2 lakh crore that could be used to combat the coronavirus crisis.

Last month, the government had announced a 4 per cent increase in dearness allowance (DA) for its 50 lakh employees and 61 lakh pensioners beginning January 1, 2020. This was to cost Rs 27,100 crore in the current financial year 2020-21.

“In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid. “The additional instalment of DA and DR due from July 1, 2020, and Jan 1, 2021, shall also not be paid,” the Department of Expenditure said in an office memorandum. However, central government employees and pensioners will continue to receive DA and DR, respectively, at the current rate — 17 per cent — till June 30, 2021.

The Department of Expenditure, under the finance ministry, in the memorandum said no arrears will be paid from January 1, 2020, to June 30, 2021. PTI