Thursday, April 23, 2020

Government's decision: Central employees and pensioners will not get dearness allowance from January 1, 2020 to July 2021

Government's decision: Central employees and pensioners will not get dearness allowance from January 1, 2020 to July 2021



  • Expensive allowances received on January 1, 2020, July 1, 2020 and January 1, 2021 will not be available.
  • If it is decided to give inflation allowance on July 1, 2021, then the inflation allowance received on January 1, 2020, July 1, 2020 and January 1, 2021 will be merged.

Arrears of inflation allowance from 1 January 2020 to 30 June 2021 will also not be available
New Delhi. The central government on Thursday took a major decision in view of the impact the Koro epidemic has had on the country's economy. The dearness allowance to be met by central employees and pensioners has been withheld till July 2021. However, the old government will continue to pay the allowance at the old rate. This means that the recent increase will no longer apply.



Subject: Freezing of Dearness Allowance to Central Government employees
and Dearness Relief to Central Government pensioners at current rates till July 2021.
The undersigned is directed to say that in view of the crisis arising out of COVID-19, it has been decided that the additional installment of Dearness Allowance payable to Central Government employees and Dearness Relief to Central Government pensioners, due from 1st January 2020 shall not be paid. The additional installments of Dearness Allowance and Dearness Relief due from 1st July 2020 and 1st January 2021 shall also not be paid. However, Dearness Allowance and Dearness Relief at current rates will continue to be paid.
2. As and when the decision to release the future installment of Dearness Allowance and Dearness Relief due from 1st July 2021 is taken by the Government, the rates of Dearness Allowance and Dearness Relief as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid. 3 These orders shall be applicable to all Central Government employees and Central Government pensioners. airathu. 

The finance ministry on Thursday said that an additional portion of the dearness allowance received by central employees from January 1, 2020 would not be paid. Accordingly, the Central Government has also decided not to pay the dearness relief allowance given to pensioners from January 1, 2020.


Allowances paid from 1 July 2020 will not be paid
The Finance Ministry said that the inflation allowance and inflation relief allowance given from July 1, 2020 and January 1, 2021 will not be paid. Thus, dearness allowance will not be paid to Central Government employees and pensioners till June 2021. The government changes the inflation allowance every six months. The inflation allowance is paid on January 1 and July 1 of each year only after the change. The decision not to provide inflation allowance will affect more than one crore central employees and pensioners. This includes 50 lakh pensioners.

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