Centre Suspends DA Hikes Till July 2021 With No Arrears After Announcing It In March

No Hikes In DA Until July 2021 With No Arrears Announce Centre

Highlights:

  • Disbursement of hiked DA frozen
  • Next two hikes are frozen as well

On Thursday, the Central Government announced the suspension of disbursement of the increased Dearness Allowance (DA) to its employees as well as the pensioners which were announced last month. Not just this but also the decision to freeze the next tow hikes was also taken because of the sheer strain which has been put on the finance by the COVID-19 pandemic.

As an aftermath of the freeze, the government will not be paying the hike in DA which was due since 1st January 2020 and the DA rates will remain the same until July 2021 according to a notification issued by the government. The government also said that no arrears will be paid for the period from 1st January 2020 until 20th June 2021.

This decision of suspending the hike of DA was taken at the Union Cabinet meeting held on Wednesday. The Union Cabinet meeting approved an increase in DA of 4% which were have come in effect from January 2020 for a total of 21% and had also said that when it was to be disbursed, employees and pensioners were to get the arrears since January 2020.

The Ministry of Finance said that additional installments of DA and Dearness Relied which will be due from July 1 of 2020 until January 1 of 2021 will not be paid either. “Dearness allowance and dearness relief will be continued to be paid at current rates,” the note, signed by Additional Secretary of Department of Expenditure Annie George Matthew, stated.

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This decision of stopping the hike and disbursement of the hiked DA will impact more than 49 lakh employees of the Central Government as well as over 6 lakh pensioners. The component of the salary and also the pension for the Government Employees, DA is meant to offset the impact of inflation which the government revises twice a year.

As per the estimates from the Ministry of Finance, this decision of freezing the DA will save the government close to Rs. 27,000 crore till March 2021.

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The tax revenues of government have depleted because of the COVID-19 as the expenses have skyrocketed to support the authorities, medical professionals and the underprivileged class of the economy.

The government has said that the next revision in DA will not be done before July 2021 and the rates due from the 1st January 2020, July 2020 and July 2021 will be subsumed cumulatively in the next revision.

This is the first monetary impact of the COVID-19 on Central Government employees, earlier, the government did cut salaries of Ministers, PM, MPs, and even the President of India by 30%.

In addition, even the Members of Parliament Local Area Development Scheme (MPLADS) has also been suspended for a period of 2 years to provide cash flow to the government to fight against the pandemic.

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Shivani Singh

Shivani has been an avid reader of newspapers since her childhood and likes to know what is happening around the world. Her love for news and bringing forth the absolute is what drove her writing for the people. She has worked in the industry for over 4 years and believes that people’s basic rights should always be honoured. Apart from reading, she is a foodie and loves to try her hands-on cooking different cuisines.

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2 Comments

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  • The decision of Central Govt. for freezing DA for the period from Jan: 2020 to June’2021 in respect of the pensioners definitely thrown them in financial debacle since the rate of interest in the small savings had recently been slashed down by the Govt. Senior citizen who are entirely depends on the pension should be facing financial crisis in view of the ensuing prize hike. Central Govt. should explore the way to extend some relief especially for the pensioners .

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  • My dear respected Prime Minister, Modiji,
    It is our greatest pride that matured leader like you is with us during this COVID-19 pandemic, ELSE, we would have been put to lot of hardship. Your vision on assessment of impact of this crisis on AAM ADMI/Trade & Commerce/revenue collection etc., managing the situation and taking right decision at right interval within the financial constraints due to loss of revenue is highly commendable. Considering our population, the percent of casualties and positive cases is highly negligible as compared to the miserable conditions in USA, France, United Kingdom etc., . The performance of our country would have been much more pleasing, had the people and also a few political parties lent their support to you by observing your simple and easy to follow techniques.
    Sir, I am a retired bank official (then State Bank of Mysore and now State Bank of India) belong to coastal taluk of KUMTA – 581 343, in Uttara Kannada District, in Karnataka State. This day I have contributed Rs.5001/- towards Chief Minister Relief Fund- Karnataka) COVID-19. We have performed extremely well in containing the spread of COVID-19 Pandemic in our district due to the excellent combination of our District Collector Mr.(Dr) K. Harish Kumar, Chief Executive Officer of Zilla Panchayat Mr. Mohammed Roshan and Superintendent of Police Shri. Shivaprakash Devaraju who are actively supported by dedicated Corona Warriors. We are proud of all these people. As on date we have 11 positive cases of which 10 cases are discharged and the remaining 1 case will also be discharged shortly. No fresh cases are reported since a long time.
    Unmindful of the sacrifice of corona warriors (which includes all) a few elected representatives are misbehaving with them and insulting them. My sincere request with you, Sir, is that these elected representatives should be punished severely, irrespective of their political affiliation, whenever they are found guilty. It is a shame for us to have them among us. They must be suspended from the Parliament/ State Assembly and be disqualified to contest the election for the next 10 years.The service rendered by corona warriors (health workers, police personnel, Doctors, Anganawadi staff etc) risking their life and foregoing family comfort, cannot be measured in terms of monitory benefits, please reward them with attractive financial package, and special reference/appreciation in their personal files, free health insurance during their life time etc.,

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