Govt freezes DA at current rates till July 2021
New Delhi: The Ministry of Finance issued a notification this afternoon freezing Dearness Allowance to its employees and Dearness Relief to pensioners at current rates till July 2021.
The additional installments, due on January 1, 2020, July 1, 2020 and January 1, 2021 will not be paid. However, DA and DR at current rates will continue to be paid. The government is likely to save Rs. 37,530 crore in the Financial Year 2020-21 and 2021-22 on account of this decision, sources said.
As state governments normally follow the Centre’s orders on DA/DR, it is estimated that states could save Rs. 82,566 crore by implementing similar orders. Thus, the total anticipated saving of the Centre and states will be Rs. 1.20 lakh crore, which will be used to fight the Covid-19 battle and its fallout.