Coronavirus Pandemic | Centre freezes dearness allowance for central govt employees, pensioners till July 2021

SRINAGAR:-(PTK) Amid the surging number of coronavirus cases in the country, the government on Thursday announced that it has decided to freeze the three installments of dearness allowance (DA) for central government employees and pensioners till July 2021.

The central government, however, announced that dearness allowance (DA) and dearness relief (DR) at current rates will continue to be paid.

“Additional installment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1 January, 2020 shall not be paid. Additional installments of DA and DR from 1 July 2020 and 1 January 2021 shall also not be paid,” the Ministry of Finance said

According to reports, the step has been taken in view of the coronavirus pandemic in the country and the move will help the government save around Rs 27,000 crore till March 2021.

The government earlier this year had hiked the DA by 4 per cent, from 17 per cent of basic pay and pension to 21 per cent of basic pay and pension for central government employees and pensioners.

At that time, Information and Broadcasting Minister Prakash Javadekar had said the 48 lakh government employees, 65 lakh pensioners would benefit from the move while adding that the government will incur Rs 14,595 crore additional expense on account of this hike.(PTK)