Central PSUs’ employees, non-unionised supervisors addl dearness allowance frozen

New Delhi: The Department of Public Enterprises (DPE) on Thursday announced the freezing of additional dearness allowance for executives and non-unionised supervisors of central public sector enterprises (CPSEs) drawing salaries under certain pay scales till June 30, 2021. "In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to employees of CPSEs drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines, due from October 1, 2020, shall not be paid," the DPE said.

Further, the additional instalments of the DA due from January 1, 2021, and April 1, 2021, will also not be paid. Dearness allowance at current rates (with effect from July 1, 2020) will continue to be paid, said the DPE's circular. "The undersigned is directed to say that in view of the crisis arising out of covid-19,  it has been decided that additional instalments of dearness allowance is payable to employees of Central Public Sector Enterprises (CPSEs) drawing pay as per 2017, 2007 1997, 1992 and 1987 ida pay revision guidelines, due from 1st October 2020 shall not be paid. The additional instalments of dearness allowances due from 1st January 2021 and 1st April 2021 shall also not be paid. However, dearness allowance at current rates (w.e.f. July 01, 2020) will continue to be paid" the circular noted.

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"As and when the decision to release the future instalments of dearness allowance due from July 1, 2020, is taken by the government, the rates of dearness allowance as effective from October 1, 2020, January 1, 2021, and April 1, 2021, will be restored prospectively," DPE said.

The DA will be subsumed in the cumulative revised rate effective from July 1, 2021, it added. Although, "no arrears" for the period from October 1, 2020, to June 30, 2021, will be paid, the DPE announced.

The circular further reads that the guidelines announced on Thursday are applicable in cases of executives and non-unionised supervisors of CPSEs drawing 2017, 2007, 1997, 1992 and 1987, IDA (industrial dearness allowance) pay scales.

It is important to note here that the DA rates in case of CPSE employees drawing CDA (central dearness allowance) pay scales have already been frozen.

In April, the finance ministry decided to put on hold increment in dearness allowance (DA) for about 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.

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