GUWAHATI: The finance ministry, on Thursday, decided to put on hold increment in dearness allowance (DA) for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.
"In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid.
"The additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid," the Department of Expenditure said in an office memorandum.
{{z2ybx51CLw9jgyRH6Sjc}}
However, DA and DR at current rates will continue to be paid.
As per a PTI report, the combined savings on account of freezing of these instalments of DA and DR to central government employees and pensioners would be Rs 37,530 crore in the current financial year and 2021-22.
The cabinet had approved an increase in DA in March from 4 percent to 21 percent.
(With inputs from PTI)