Pending DA installments to be restored from July: FinMin

NEW DELHI:  The Finance Ministry on Tuesday said that the three pending installments of dearness allowance (DA) and dearness relief will be restored from July. This comes as a relief to 50 lakh central government employees and 61 lakh pensioners as they are getting their DA at the previous rate since the implementation of the increased rate was put on hold due to Covid-19 crisis. 

“The three installments of Dearness Allowance and Dearness Relief to central government employees and pensioners due from 1.1.2020, 1.7.2020 and 1.1.2021 were frozen in view of the pandemic,” the Finance Ministry stated. In a written reply to the Rajya Sabha, Minister of State for Finance Anurag Thakur stated that the government saved more than ₹35,430.08 crore from freezing these three hikes of DA. This had helped in dealing with Covid-19 disruptions in the country in 2020.

Currently, central employees get DA of 17 per cent of their basic salary. Last year, the Union Cabinet had approved a four per cent increase in DA for government employees, which was to be effective from January 1, 2021. But in April 2020, the increment was stalled. The four per cent DA hike was expected in accordance with the formula which is based on recommendations from the 7th Pay Commission.