Covid-19: DA hike for Govt employees, pensioners put on hold till July 2021


NATIONAL | APRIL 23, 2020:

Government has put on hold increase in Dearness Allowance for its employees because of the strain on its finances due to COVID- 19. In view of the crisis arising out of COVID-19, it has been decided that additional instalment of Dearness Allowance to employees and Dearness Relief to pensioners due from 1st of January 2020 shall not be paid.

The government, via an office memorandum today, announced its decision to put on hold the hike in dearness allowance (DA) for the year.

Central government employees and pensioners will now continue to receive DA at current rates, i.e., 17 per cent as part of their salary/pension, according to the office memorandum.

The memorandum further states the additional instalments 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.

As and when decision to release future instalments due from 1st July 2021 is taken by the government, the rates of DA and DR as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively.