17% fixed DA and DR for 18 months from January 2020 to June 2021 to all CG Employees and Pensioners
Freezing of Dearness Allowance for CG Employees and Pensioners
The Government of India has terminated the additional Dearness allowance (DA) and Dearness Relief (DR) for the period of 18 months. As per the office memorandum issued by the Department of Expenditure, the terminated additional DA and DR of three installments will restore with cumulative rates in July 2021. So the next DA and DR hike in July 2021 only.
No DA Arrears for 18 Months
The Finmin Order clearly said no DA and DR arrears for the period of 3 installments from 1st Jan 2020 to 30th June 2021 shall be paid.
3 Additional DA will Restore in July 2021
The Finance Ministry order mentioned in para 2, when the Government declaring the future installment of DA and DR due from 1st July 2021, the rates of the suspended period will be restored with a cumulative basis. The below table is describing the segments of DA has suspended.
July to December 2021: 17% + 3 Additional DA + DA July 2021
January to June 2021: No DA and DR
July to December 2020: No DA and DR
January to June 2020: No DA and DR
July to December 2019: 17%
January to June 2019: 12%
July to December 2018: 9%
January to June 2018: 7%
July to December 2017: 5%
January to June 2017: 4%
July to December 2016: 2%
January to June 2016: 0
What is ‘Freezing DA’?
DA hike provisionally stopped for a certain period. Twice in a year, a certain percentage of DA is admissible for CG employees and pensioners. The enhancement of additional DA is stopped provisionally for 18 months. This is called ‘Freezing of DA Period’ (1.1.2020 to 30.6.2021).
What is DA and DR?
Dearness Allowance (DA) and Dearness Relief (DR) both are the same. Dearness allowance and Dearness relief are being granted to existing employees and retired employees respectively. Dearness allowance is calculated on the basis of current basic pay of Government employees and the dearness relief is calculated on the basis of basic pension of Government pensioners. [Click to read continue…]