Dearness Allowance Notification: Hike due from January 2020 stopped for Central Government Employees

Dearness Allowance and DR due payment stopped for central government employees, pensioners.

Dearness Allowance Latest News for Central Government Employees: The Union Government today put on hold increment in dearness allowance (DA) and Dearness Relief (DR) for 50 lakh central government employees and 61 lakh pensioners respectively till July 2021 due to the COVID-19 crisis.However, DA and DR at current rates will continue to be paid. The last DA hike for central government employees was effected last month effective January 1. 2020. The Union Cabinet had then approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent. With Thursday’s decision, this 4 per cent hike has been put on hold.

“In view of the crisis arising out of COVID-19, it has been decided that the additional installment of Dearness Allowance payable to Central Government Employees, Dearness Relief to Central Government pensioners, due from 1st January 2020 shall not be paid,” said an Office Memorandum of Department of Expenditure, Ministry of Finance today.

“The additional installments of Dearness Allowance and Dearness Relief due from 1st July 2020 and 1st January 2021 shall also not be paid. However, Dearness Allowance and Dearness Relief at current rates will continue to be paid,” it added.

The O.M. further said, “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.”