Freezing of DA for central government employees News latest update

Freezing of DA for central government employees News latest update

Freezing of DA

Dearness Allowance and Dearness Relief for Central Government Workers as per the 7th Pay Commission Latest News – 3 Pending DA and DR Installments to be restored from July 2021.

In a written response to a question in Parliament, Minister of State for Finance Anurag Thakur stated that the Central Government saved more than Rs. 37530.08 crore by freezing three installments of Dearness Allowance and Dearness Relief. He also mentioned that beginning in July 2021, the three additional DA and DR installments would be restored.

Government of India
Ministry of Finance
Department of Expenditure

 Rajya Sabha
Unstarred Question No. 1669
To be answered on Tuesday, 9th March, 2021
Phalguna 18, 1942 (Saka)

Freezing of DA

1669: Shri Naranbhai J. Rathwa:
Will the Minister of Finance be pleased to state:

a) whether freezing of Dearness Allowance (DA) to Central Government employees/pensioners till July, 2021 has subjected them to undue hardship;

b) if so, the reasons for not restoring DA to Central Government Employees and pensioners before July, 2021; and

c) whether Central Government employees and pensioners are not entitled to three installments of DA and, if so, whether Government would also release these installments and, if not, reasons therefor?

Answer

Minister of State in the Ministry of Finance
(Shri Anurag Thakur)

(a,& b) In view of the crisis arising out of COVID-19 pandemic, the Government has decided to freeze three installments of Dearness Allowance and Dearness Relief to Central Government employees and pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021. The amount Rs.37530.08 crores saved on this account will help to tide over the economic impact of COVID-19 pandemic

 

(c) As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020, and 01.01.2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021.

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January 2020, July 2020 DA & January 2021 DA Calculation

The Cabinet Committee already approved to increase 4% additional DA from January 2020 on the basis of the Consumer Price Index (CPI). The next installment from July 2020 is already decided to increase by 4% additionally (However, after the approval of the Cabinet Committee only the percentage of DA will decide!).

And another installment will also be expected to hike by 3% with effect from 1st January 2021. The below expected DA list, which is used in our software tool for your information:

• 1st January 2020 = Additional DA 4% (17% + 4% = 21%)
• 1st July 2020 = Additional DA 4% (21% + 3% = 24%)
• 1st January 2021 = Additional DA 4% (24% + 4% = 28%)
• 1st July 2021 = Additional DA 4% (Expected) (28% + 4% = 32%)

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 FAQ

 

Whether freezing of Dearness Allowance (DA) to Central Government employees/pensioners till July, 2021 has subjected them to undue hardship

In view of the crisis arising out of the COVID-19 pandemic, the Government has decided to freeze three installments of Dearness Allowance and Dearness Relief to Central Government employees and pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021. The amount Rs.37530.08 crores saved on this account will help to tide over the economic impact of COVID-19 pandemic

If so, the reasons for not restoring DA to Central Government Employees and pensioners before July, 2021;

In view of the crisis arising out of the COVID-19 pandemic, the Government has decided to freeze three installments of Dearness Allowance and Dearness Relief to Central Government employees and pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021. The amount Rs.37530.08 crores saved on this account will help to tide over the economic impact of COVID-19 pandemic

Whether Central Government employees and pensioners are not entitled to three installments of DA and, if so, whether Government would also release these installments and, if not, reasons therefor?

As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020, and 01.01.2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021.