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Finance Ministry freezes increment on DA for central govt employees

New Delhi: The finance ministry on Thursday determined to placed on maintain increment in dearness allowance (DA) for 50 lakh central authorities staff and 61 lakh pensioners until July 2021 because of the COVID-19 disaster.

“In view of the disaster arising out of COVID-19, it has been determined that extra instalment of dearness allowance payable to central authorities staff and dearness reduction (DR) to central authorities pensioners due from January 1, 2020, shall not be paid.

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“The extra instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall additionally not be paid,” the Division of Expenditure stated in an workplace memorandum.

Nevertheless, DA and DR at present charges will proceed to be paid.

In response to sources, the mixed financial savings on account of freezing of those instalments of DA and DR to central authorities staff and pensioners could be Rs 37,530 crore within the present monetary 12 months and 2021-22.

Typically, the states comply with the Centre order on DA and DR.

It’s estimated that the financial savings on suspension of those instalments of DA and DR of state authorities staff and pensioners might be Rs 82,566 crore, the sources stated.

Thus, the mixed financial savings of the Centre and states might be Rs 1.20 lakh crore, which is able to assist in combating the battle in opposition to COVID-19 and its fallout.

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The final DA hike for central authorities staff was effected final month efficient January 1. 2020. The Union Cupboard had authorised a four per cent enhance in DA for presidency staff and pensioners to 21 per cent.

With Thursday’s choice, this four per cent hike has been placed on maintain.


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