COVID-19: TN Freezes DA, Suspends Earned Leave Encashment

Tamil Nadu government announced freezing of additional instalment of DA for employees and pensioners till July 2021.

Does this mean the employees will no longer get their DAs? What happens to pensioners? Here’s all you need to know.

(Photo: Erum Gour/The Quint)

Citing the severe fiscal crisis due to the COVID-19 pandemic, the Tamil Nadu government on Monday, 27 April, announced the freezing of additional instalment of Dearness Allowance (DA) for its employees and pensioners till July 2021 and suspended earned leave encashment for a year.

Pointing to the centre's recent communique that additional instalment of DA to its employees and pensioners due from 1 January 2020 shall not be paid, a Government Order (GO) said Tamil Nadu toed the union government's rate of dearness allowance for its employees, pensioners and family pensioners.

Hence, Tamil Nadu has decided to follow the centre's decision to put on hold the additional DA payout as well, it said.

Also, in view of ‘the severe fiscal crisis arising out of the COVID-19 pandemic,’ the government has decided to freeze the additional Dearness Allowance payout till July 2021, the order said.

As per a GO of last year, effective 1 July 2019, the rate of Dearness Allowance was 17 percent of basic pay. It was a revision following orders by the Centre enhancing the DA for its employees. Ahead of that encashment, the rate of DA stood at 12% for Tamil Nadu government employees.

Accordingly, the additional instalment of DA payable to government employees, teachers, pensioners, family pensioners due from 1 January 2020 shall not be paid.

"The additional instalments of DA due from 1 July 2020 and 1 January 2021 shall also not be paid," it said.

The order is applicable to teaching, non-teaching staff in aided educational institutions and employees under local bodies as well. In another G.O, the government said the periodical surrender of earned leave for encashment for 15 days every year or 30 days every two years stands suspended initially for one year to all government employees and teachers.

"All surrender requests and bills pending as on date, irrespective of their stage of sanction and disbursement, shall not be processed. The curb covers local bodies and institutions under the government as well," the order said.