In order to survive, companies have resorted to slashing salaries and laying off staff. Others have put employees on indefinite leave without pay or put freshly hired staff on hold. According to a survey, every two in 5 employees are facing the salary cuts.
The huge slowdown had even forced the government to slash the Dearness Allowance (DA) at the previous rate. The Dearness Allowance paid to the central government employees and pensioners was slashed to 17 % as against the earlier 21%, due to the pandemic and effect of the crisis on the state exchequer.
However this is temporary and the arrangement is believed to be implemented till June 2021. Post that, the government might give relief on DA and the employees will start getting more salary, while the pensioners will get more pension.
In April, a decision was taken by the Centre not to hike it this year in wake of the pandemic. Prior to the pandemic, the Dearness Allowance of central employees is increased in the month of July every year.
What is Dearness Allowance?
The Dearness Allowance (DA) is a calculation on inflation and allowance paid to government employees, public sector employees (PSE) and pensioners in India, Bangladesh and Pakistan. Dearness Allowance is calculated as a percentage of an Indian citizen’s basic salary to mitigate the impact of inflation on people. It is increased twice a year so that the level of standard of living of employees remains unaffected to the inflation.
However, post the slashing of DA, Diwali bonuses have been paid on the occasion of Dussehra to more than 30 lakh employees. Also, relief has been given on LTA and LTC. The LTC Cash Voucher Scheme was announced on October 12 by the Central Government.
Till now, the central employees were given LTC benefits only on travelling. Under this, employees can purchase services and goods that attract 12 per cent or more GST.
Good news for Delhi & West Bengal government employees:-
Apart from this, the Delhi government and the West Bengal government also announced a DA hike for unskilled, semi-skilled, skilled and other category workers.
Deputy CM Manish Sisodia who is also in charge of the labour department, announced a much-needed increase in monthly DA. He said that the AAP government will make sure that the workers get their salaries on time even during the coronavirus pandemic.
The revised minimum wages, including the DA, will be applicable from October 1 in all scheduled employment.
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