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Coronavirus Impact: Government freezes dearness allowance of its employees

According to the notification, no arrears for the period from January 1, 2020, to June 30, 2021, will be paid to the Central government employees.

By Newsd
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Coronavirus Impact Government freezes dearness allowance of its employees

In the wake of the country’s financial situation because of the novel coronavirus outbreak, the Central government has stopped hike in Dearness Allowance for its employees and Dearness Relief for its pensioners. The hike was applicable from January 1, 2020.

The additional installments of Dearness Allowance and Dearness Relief due from July 1, 2020 and In January 2021 shall also not be paid, the government said in an order on Thursday. However, it clarified that the Dearness Allowance and Dearness Relief at current rates will continue to be paid.

No arrears will be paid

According to the notification, no arrears for the period from January 1, 2020, to June 30, 2021, will be paid to the Central government employees. Earlier in March, the Union Cabinet had decided to increase the DA by 4 per cent with effect from January 2020.

As and when the decision to release the future installment of Dearness Allowance and Dearness Relief due from July 1, 2021 is taken by the Government, the rates of Dearness Allowance and Dearness Relief as effective from January 10, 2020, July 1, 2020 and January 1, 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from July 1 2021. No arrears for the period from In January 2020 till 30h June 2021 shall be paid.

The government said that the decision has been taken as there is a need for increasing the expenditure on health and welfare measures for those affected by the coronavirus outbreak.

The move is expected to impact more than 49.26 lakh employees and over 61 lakh pensioners. According to an estimate, this decision will help the government save around Rs 37,530 crore.

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