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

By: |
Updated: April 24, 2020 6:49 AM

Dearness Allowance Latest News for Central Government Employees: The Union Government has stopped the implementation of recent dearness allowance and dearness relief hikes for Central Government employees and pensioners because of Coronavirus crisis.

dearness allowance due payment stopped 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.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Tax-Saving Infrastructure Bonds: Know how much tax to be paid on maturity and how to avoid TDS
2Personal Loan vs Loan against PPF: Which one should you opt for?
3National Pension System: Key features to know before opening an NPS account