COVID-19 effect: Central Govt freezes DA, DR till July 2021

Bhubaneswar: Cutting additional expenses to deal with COVID-19 pandemic in the country, Centre has frozen new rates of Dearness Allowance (DA) and Dearness Relief (DR) of government employees and pensioners till July next year.

As per the notification, the Central government employees will not be paid the DA hike till July 2021, which is due from January 1, 2020.

The additional installments of DA and DR due from July 1, 2020 and January 1, 2021 shall also not be paid, the office memorandum issued by Ministry of Finance stated today.

However, the DA and DR at current rates will continue to paid to employees and pensioners.

The new rates of DA and DR as effective from January 1, 2020, July 1, 2020 and January 1, 2021 will be restored after the Government will take decision to release the future installment of DA and DR due from July 1, 2021.

In view of COVID-19 situation, the arrears for the period from January 1, 2020 till June 30, 2021 will not be paid to employees and pensioners.

In March this year, the Cabinet Committee on Economic Affairs had approved a 4 percent hike in DA to benefit 48 lakh Central Government employees and 65 lakh pensioners with effect from January 1, 2020. The DA was raised from 17 percent to 21 percent. An increase in dearness relief (DR) was also approved. Following outbreak of COVID-19, it was expected that the Government might suspend disbursement of increased DA to its employees and pensioners.