PAYMENT of enhanced DA for serving central govt employees & DR for pensioners deferred till July 2021

THE Union  Finance Ministry has deferred payment of hike in dearness allowance (DA) for central government employees and dearness relief (DR) for central government pensioners till July next year. The Union Cabinet had last month hiked the DA and DR by 4%, from 17% of basic pay/pension to 21% of basic pay/pension for central government employees and pensioners. There are about 50 lakh government employees and 65 lakh pensioners. The DA and DR hike would have cost the exchequer ₹37,530 crore in the current financial year and 2021-22. The government revises dearness allowance twice a year to compensate for the rise in prices. Next revision is now scheduled in July. This is the first coronavirus impact on central government employees. The government had earlier cut salaries of ministers, PM, President and Members of Parliament by 30%. In addition, there MPLADs scheme has also been suspended for two years to provide more funds to fight the coronavirus pandemic. The total savings on the scheme would be about Rs 8,009 crore. Members of several state legislative assemblies have voluntarily opted for cut in their monthly salaries in view of the national emergency caused by coronavirus. The Govt has made it clear that dearness allowance and dearness relief at current rates will continue to be paid.