In a major setback for lakhs of employees, the Government has freezed the DA/DR till july 2021.
As per Department of Expenditure, finance ministry, letter has been issued to freeze the Dearness allowance for central government employees and Dearness relief to central government pensioners till july 2021 via letter no. 1/1/2020-E-II (B), Department of Expenditure, finance ministry, Government of India, dated 23rd April, 2020.
In its earlier press conference by Government, the DA has been increased by 4% to 21%, but now due to the financial strain out of COVID-19, it has been decided to freeze all this increment.
Till July 2021 means, the DA revision for 1st Jan 2020, 1st July 2020 and 1st Jan 2021 will not happen and from 1st July 2021, the revision may start as per direction of Government.
Also, it is mentioned in the order that, the rates of DA and DR for these 3 periods will be restored prospectively and subsumed in the cumulative revised rate effective from 1st july 2021.
No arrears will be paid for these 3 missed periods, but the DA/DR will be maintained at the current rate of 17%.