The Central government on Thursday [23/04/2020] freezes dearness allowance (DA) and dearness relief (DR) for 11 million employees and pensioners w.e.f January 2020 to July 2021, in a bid accumulate fund fight the COVID-19 pandemic.
An office memorandum in this regard said, “In view of the crisis arising out of COVID-19, it has been decided that the annual installment of Dearness Allowance payable to Central Government employees and Dearness Relief to Central Government pensioners, due from January 1, 2020 shall not be paid. The additional installment of DA/DR due from July 1, 2020 and January 1, 2021 will also not be paid. However, DA/DR at current rates will continue to be paid.“
According to sources, the combined savings on account of freezing of these installments of DA and DR to central government employees and pensioners would be Rs 37,530 crore in the current financial year and 2021-22.