Covid-19: Centre freezes hikes in dearness allowance, relief for employees, pensioners till July next year
23 April, 2020 | newsx bureau
Finance Minister Nirmala Sitharaman-led cabinet has decided to freeze increments in dearness allowances and dearness reliefs for the central government employees and pensioners till July 2021.
The Ministry of Finance on Thursday announced to freeze the hike in dearness allowance (DA) for the central government employees and dearness relief (DR) for the central government pensioners till July next year.
According to the order issued today, no arrears will be paid for the period from January 1, 2020, to June 30, 2021.
“In view of the crisis arising out of COVID-19, it has been decided that the additional instalment of dearness allowance payable to Central Government employees and dearness relief to Central Government pensioners, due from January 1, 2020, shall not be paid,” the order said.
It said that the additional instalments of dearness allowance and dearness relief due from July 1, 2020, and January 1, 2021, shall also not be paid. It, however, said that DA and DR at current rates will continue to be paid.
“As and when the decision to release the future instalment 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 1, 2020, July 1, 2020, and January 1, 2021, will be restored prospectively and will be submitted in the cumulative revised rate effective from July 1, 2021,” it added.