Centre Delays DA Hike of Govt Employees Due to COVID-19 Crisis

The Union cabinet had earlier approved an increase in DA in March from 4 percent to 21 percent.

Image of Indian currency used for representational purposes.

(Photo: The Quint)

The Ministry of Finance on Thursday, 23 April, said that additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to central government pensioners, due from 1 January 2020, will not be paid because of the financial strains due to the coronavirus crisis, ANI reported.

Additional instalments of DA & DR from 1 July 2020 & 1 January 2021 shall also not be paid, the ministry added. However, Dearness Allowance and Dearness Relief at current rates will continue to be paid, it added.

On Wednesday, 22 April, the Union cabinet said it will listen to a proposal about putting on hold any more increases for the current year, according to a report by Economic Times.

The cabinet had approved an increase in DA in March from 4 percent to 21 percent. The government’s tax revenues have seen a sharp drop because of the nationwide lockdown.

This will be the first impact caused by the crisis on central government staff. Earlier, the salaries of the Prime Minister, President and members of Parliament had been slashed by 30 percent. Added to that, the MPLADs scheme has also been suspended for two years.

An ordinance to amend a law to reduce the salaries of members of parliament by 30 percent for one year “to meet the exigencies arising out of COVID-19 pandemic" was promulgated on 7 April.

(Inputs: Economic Times)