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COVID: Govt freezes arrears, defers Dearness Allowance revision for govt employees

The government said that it has put on hold the revision of dearness allowance and the payment of arrears to all government employees till June 30, 2021

  • Additional instalment of Dearness Allowance payable to Central Government employees and Dearness Relief to Central Government Pensioners due from 1st January, 2020 shall not be paid

  • No arrears will be paid for the period between January 1, 2020 and June 30, 2021

New Delhi: In an official order released on Thursday, the government said that it has put on hold the revision of dearness allowance and dearness relief and the payment of arrears to all Central government employees and pensioners till June 30, 2021. The statement comes as the country is under a lockdown to contain the spread of COVID-19 pandemic and the economy has come to a standstill. The government is looking at ways to cut expenditure in order to bolster its revenues and use it for fighting the pandemic and the slowdown left behind in its wake.

Dearness Allowance & Dearness Relief will be paid at current rates

An office memo dated April 23 said, “…in view of the crisis arising out of COVID-19, it has been decided that the additional instalment of Dearness Allowance payable to Central Government employees and Dearness Relief to Central Government Pensioners due from 1st January, 2020 shall not be paid. The additional instalments of Dearness Allowance and Dearness Relief due from 1st July, 2020 and 1st January, 2021 shall also not be paid. However, Dearness Allowance and Dearness Relief at current rates will continue to be paid.”

No arrears for the period between Jan 1, 2020 and June 30, 2021

The document added categorically that no arrears will be paid for the period between January 1, 2020 and June 30, 2021 and that the order will be applicable to all Central government employees and pensioners. It, however, added, “As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from 1st July, 2021 is taken by the Government, the rates of Dearness Allowance and Dearness Relief as effective from 1st January, 2020, 1st July, 2020 and 1st January, 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July, 2021.”