The Government has announced its decision to put on hold the hike in dearness allowance for a long time. In March this year, the Union Cabinet had approved an increase of 4% in DA . The current rates are 17% and with the hike, the employees and pensioners would have received 21% as part of their salary or pension.
The newly released memorandum states that the hike has been put on hold from January 1, 2020 to June 30, 2021 and no arrears will be paid later on.
The memorandum states, “It has been decided that the additional instalment of Dearness Allowance payable to Central Government employees and Dearness Relief to Central Government pensioners due from 1st January 2020 shall not be paid. The additional instalment of Dearness allowance and Dearness relief due from 1st July 2020 and 1st January 2020 shall not be paid. However, Dearness Allowance and Dearness Relief at current rates will continue to be paid.”
It further adds, “As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from 1st July 2021 is taken by the Government the rates of Dearness allowance and Dearness relief effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from July 1, 2021. No arrears from the period from 1st January 2020 to 30 June 2021 will be paid.”
This decision will not only impact the government employees but also the pensioners.
Dearness Allowance (DA) is given to government employees and pensioners to compensate for the rising inflation. It is revised twice in a year.