Freezing of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates till July 2021

Freezing of Dearness Allowance and Dearness Relief – Finmin Orders

Today the Department of Expenditure under the Finance Ministry has published an important order regarding the decision taken on the subject of Dearness Allowance and Dearness Relief to Central Government employees and pensioners.

In view of the crisis arising out of COVID 19, the Central Govt has decided that the no additional Dearness Allowance and Dearness Relief to Central Govt employees and pensioners respectively from 1.1.2020.

However, the order said the DA and DR will be paid at current rates and the dues will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021.

And, no DA and DR arrears will be paid from January 2020 to June 2021.

What is the meaning of Freezing of Dearness Allowance?

The meaning of Freezing of DA is the additional percentage of Dearness allowance will be suspended for some time. Every Central Govt employee is getting an additional DA once in six months. This increment will be stopped for a particular period is called ‘Freezing of DA’.

Freezing of DA and DR till June 2021 – The existing rate (17%) will continue to be paid to all Central Government employees and pensioners up to June 2021.

Also read: Delay in issuing orders for grant of additional Dearness Allowance w.e.f. 01.01.2020 – Confederation

Freezing of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates till July 2021

No.1/1/2020-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 23rd April 2020

OFFICE MEMORANDUM

Subject: Freezing of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates till July 2021.

The undersigned is directed to say that in view of the crisis arising out of COVID-19, has been decided that the additional installment 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 installments 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,

2. As and when the decision to release the future installment 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. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid.

3 These orders shall be applicable to all Central Government employees and Central Government pensioners.

sd/-
(Annie George Mathew)
Additional Secretary to the Government of India

To
(i) All Ministries[Departments of the Government of India (as per standard distribution list).
(ii) Ministry of Railways
(iii) Ministry of Defence

Copy to: C&AG, UPSC, etc. as per standard endorsement list. 1/1/20204-11 (O) 23 2020 2021

Click to view the Finmin Order

17% Fixed DA for one and half year:

As per the Central Government decision on DA and DR to Central Govt employees and pensioners, the rate has been fixed as 17% for 18 months from January 2020 to June 2021. There will be no arrears.