Dearness Allowance Hike For Government Staff Paused Till July 2021, No Arrears

New Delhi: Dearness Allowance and Dearness Relief hike for government employees was stopped by the government today, in view of the country's financial situation amid the coronavirus pandemic. The freeze -- applicable from January -- will be on till June 2021, the government said. If the states follow the Centre's example, the combined savings will be 1.20 lakh crore, which will help in the battle against the coronavirus, the government said.
A component of salary and pension of government employees, Dearness Allowance is meant to offset the cost of inflation. The decision will hit the income of around 48.34 lakh Central government employees and 65.26 lakh pensioners.

In a notification today, the government pointed to the additional demands on its finances. "There is a need for major increase in the expenditure on health as well as on welfare measures for various affected sections of the society including the poor and the vulnerable," the notice read.

"In this background, the government has decided to freeze the Dearness Allowance to Central Government employees and Dearness Relief to pensioners for the installments between 1st January 2020 and 1st July 2021. The rate of DA and DR will be restored from 1st July 2021 with prospective effect. The existing level of Dearness Allowance and Dearness Relief will continue to be paid to all employees/pensioners," the notice further read.