BH CORRESPONDENT, New Delhi: The central government on Thursday announced that it has suspended the increment in dearness allowance (DA) for its employees till July 2021 in wake of the financial stress it is going through due to the coronavirus crisis.
The move will affect around 50 lakh central government employees and 61 lakh pensioners.
“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 Finance Ministry said in its order.
The DA and DR at current rates will continue to be paid, it added.
The order further read, “As and when the decision to release the future installment of dearness Allowance and Dearness Relief due from 1st July 2021 s taken by the Government, the rates of Dearness Allowance and Dearness Relief as 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 1st July 2021. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid.”