No salary, No Dearness Allowance,No arrears for Government Employees till July 2021 – Finance ministry has notified to freeze Dearness Allowances (DA) to Central Government employees and Dearness Relief (DR) to Central Government pensioners till July, 2021. Government notifications says :
“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,” an office memorandum of Finance Ministry said. Further, the additional installment of DA/DR due from July 1, 2020 and January 1, 2021 will also not be paid.
“No arrears for the period from January 1, 2020 till June 30, 2021 shall be paid,” the memorandum said.
As on date 48.34 lakh Central Government employees get DA and 65.26 lakh pensioners get DR. It has been said that as and when the decision to release the future installments of DA/DR due from July 1, 2021 is taken by the government, the rates of DA/DR as effective from January 1, 2020, July 1, 2020 and January 1, 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from July 1, 2021.
It is anticipated of saving ₹ 1.20 lakh crore to fight COVID-19.