New Delhi: Central government employees and pensioners will get full benefits of dearness allowance (DA) starting July 1, with all the three pending installments being restored prospectively, Minister of State for Finance, Anurag Thakur informed Rajya Sabha on Tuesday.
Thakur said that the three pending instalments of DA for the central government employees will be “subsumed in the cumulative revised rates effective from 1 July, 2021.”
Thakur, in a written reply to the Rajya Sabha, stated that the Centre had retained more than Rs 35,430.08 crore by freezing the three installments of DA. This had helped in dealing with the COVID-19 outbreak in the country in 2020.
“The three installments of Dearness Allowance and Dearness Relief to central government employees and pensioners due from 1.1.2020, 1.7.2020 and 1.1.2021 was frozen in view of the coronavirus pandemic,” Thakur said.
At present, central government employees get DA of 17 per cent. This level of DA became effective from July 2019 with further revision due from January 2020. But this along with subsequent two other revisions were suspended due to COVID-19.
Last year, the Union Cabinet had approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent. This was to be effective from January 1, 2020. However, in wake of the pandemic the disbursement of DA at increased rates was suspended along with DR for the pensioners in April 2020.
“In view of the crisis arising out of Covid-19, it has been decided that the additional installment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1st January 2020 shall not be paid. Additional instalments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid,” the Finance Ministry had said.