Govt Cancels DA Hike For 50 Lakh Govt Employees, 60 Lakh Pensioners; DA Hike From This Date?

As per the latest development, the employees and pensioners will not get a dearness allowance (DA) hike this year as decided by the center government.

Dearness Allowance Hike

Although, there are chances that the government may consider the hike in DA in July next year.

As we all know that the government is going through financial stress due to covid-19 virus spread now.

So, they have suspended the increment in dearness allowance (DA) for its employees till July 2021.

This move would be affecting over 50 lakh central government employees and also including  61 lakh pensioners.

Finance Ministry Order

Regarding the same,  the Finance Ministry said, “In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid,”.

 In an office memorandum, the Department of Expenditure said, “the additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid,”.

The government’s tax revenues have taken a bad hit with the economic crisis that arose in wake of the coronavirus lockdown.

Contrary to that, the expenses have increased immensely with the little earnings.

There has also been a report of cautious spending by people.

DA New Rate Application

According to the reports, this decision to not to give DA on new rate is in effect from January 2020 to June 2021.

That means that there won’t be an increment in DA of these employees and pensioners during this period. 

So, it can happen only after this date may be in July.

In a year, DA is revised twice in a year during January and July.

But, the government decided against it due to the impact of coronavirus on the central government’s treasury.

The relief for employees is very much expected to come after June 2021. 

For a long time, these employees and pensioners have been waiting for the government to announce the 7th pay commission based DA.

With the latest development, it seems that this front will be done only after June 2021.

At present, the government is paying DA to employees at 17 per cent, although they are entitled for 21 percent.