Published On: Tue, Apr 28th, 2020

Centre denies suspension of other allowances after freezing DA hike

New Delhi: The central government denied a media report that the government had suspended other allowances of its employees after freezing dearness allowance (DA) hike.

Representative image

The media report claims that the government has suspended various allowance likes LTC, leave encashment (during LTC or on retirement), OTA and medical reimbursement of central government employees.

Responding to the report on Twiter, the government fact-checker handle ‘PIB Fact Check’ said on Monday that there is no such proposal of the government to cut the various allowances like LTC, Leave Encashment, OTA, Medical reimbursement etc.

It said that the report claiming such cut is wrong and baseless.

The PIB Fact checker said that payment of these allowances to the central government employees will continue to be made as per the current applicable parameters.

The Finance Ministry also said, “There is no proposal for any cut in various allowances including LTC, Leave encashment during LTC or Leave encashment on retirement, OTA and medical reimbursement, as admissible under the existing orders, has either been considered or under contemplation at present. These payments will be continued to be paid as per existing norms.”

It added that the media person who was reporting the news on the assumption of the internal communication of dated April 22, 2020 of Indian Audit and Accounts Department under the Comptroller and Auditor General of India.

But he failed to cross verify the fact from the Department of Personnel and Training (DoPT) or the Finance Ministry.

The government also rejected the reports in a section of media that there was a proposal to retire the central government employees at the age of 50.

However, the government last week issued an order freezing the dearness allowance (DA) to the central government employees and dearness relief (DR) to Central government pensioners at current rates till July 2021.


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