Union employees and pensioners will not get dearness allowance this year

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The Union government is separately working on a similar proposal for the state government employees that would save about Rs 82,566 crore.

The Centre on Thursday held back a revision of the dearness allowance paid to all Union government employees for 18 months and proposed a similar move by state governments to collectively save about Rs 1.20 lakh crore to fund the fight against the Covid-19 pandemic, two officials with direct knowledge of the matter said.
The department of expenditure, an arm of the finance ministry, on Thursday issued an order freezing dearness allowance (DA) payments to central government employees and dearness relief (DR) to pensioners until July 2021, citing the “ crisis arising out of Covid-19”.
“However, Dearness Allowance and Dearness Relief at current rates will continue to be paid,” the order said.
DA and DR will be restored prospectively after June 30, 2021, but no arrears for the period from January 1, 2020 to June 30, 2021 shall be paid,the order said.
Location: Chandigarh, India

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