Centre’s decision to curtail DA amid COVID-19 crisis will affect 48 lakh Central govt employees, 65 lakh pensioners along with railway employees and pensioners
New Delhi: The central government has taken up a decision not to pay the additional installment of dearness allowance (DA) payable to Central government employees and pensioners due from January 1, 2020 to July 2021. However they will continue to get DA at current rates, said the government.
The decision to curtail DA will affect 48 lakh Central government employees, 65 lakh pensioners along with railway employees and pensioners.
The government of India revises DA of Central government employees and pensioners twice in a year based on the consumer price index. But due to the current global crisis of coronavirus pandemic, the additional installments due from January 1 2020 till July 2021 won’t be distributed.
However, the government announced that when the decision to release the future installments of DA, due from July 2021, will be made, the rate of DA and dearness relief paid to pensioners as effective from January 1, 2020 to July 2021 will be restored prospectively and will be included in the increased revised rate effective from July 1 2021. This simply means that no arrears for the period from January 1, 2020 till June 30 2021 shall be paid to the Central government employees and pensioners.