DA for Central staff frozen till July 2021

24/04/2020

As and when the decision to release the future instalment of DA and DR due from July 1, 2021, is taken by the government, the rates of DA and DR, as effective from January 1, 2020, July 1, 2020 and January 1, 2021, will be restored prospectively.

They will be subsumed in the cumulative revised rate effective from July 1, 2021. However, no arrears for the period from January 1, 2020, till June 30, 2021, will be paid, according to the Department of Expenditure’s order.

The combined savings on account of freezing of three instalments of DA and DR would be ₹37,530 crore in 2020-21 and 2021-22, an official said.

Rising expenditure

The decision had been taken considering that there was a major increase in the expenditure on health as well as on welfare measures for various affected sections of society, including the poor and vulnerable.

The State usually follow the Central orders on DA and DR. The Centre estimates that the saving on freezing of three instalments of State government employees and pensioners will be ₹82,566 crore.