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,
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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.
| Month / Year | DA Rate | Actual DA Rate |
| January 2020 | 17% | 21% |
| February 2020 | 17% | 21% |
| March 2020 | 17% | 21% |
| April 2020 | 17% | 21% |
| May 2020 | 17% | 21% |
| June 2020 | 17% | 21% |
| July 2020 | 17% | |
| August 2020 | 17% | |
| September 2020 | 17% | |
| October 2020 | 17% | |
| November 2020 | 17% | |
| December 2020 | 17% | |
| January 2021 | 17% | |
| February 2021 | 17% | |
| March 2021 | 17% | |
| April 2021 | 17% | |
| May 2021 | 17% | |
| June 2021 | 17% |
Compensating as COVID relief. After Covid is over ???
Lets be specific on the calculations of entitlement and additional relief due to circumstances which can be withdrawn once it gets normal.
The family pensioners should at least have the amount by the last week of the month to avoid inconvenience. The govt. has rightly adopted the OROP. Seems hesitant in paying arrears of DA. There have been debates on the increment. .I hope the debates do not lead the families to distress. Hence the pension be deposited well within time.
Online transactions be made easy and safe for seniors from their smartphones. Banks ought to take responsibility in case accounts are hacked. This will require the amount withdrawn be in proportion to the balance so that the account holder is not deprived nor banks have to compensate before nailing the culprits.
Banks do inform of a transaction but do not give time to the customer to verify as immediately a second message is received and the amount debited. So the verification is merely a formality. Some hours be given which should bebworking hours of the bank and not when the bank cannot be contacted.
I think hereafter govt will not sanction the da/desirable constitutional amendment will replace it
In INDIA the Pandemic Corona virus was declared by our Prime Minister only on 21st March, 2020, but the D.A./D.R. from 1-1-2020 so JCM Leader may represent Government that the D.A. points the period of price index from July to December, 2019 of 4% (total 17+4=21%), so it should be given to the Employees/Pensioners from 1-1-2020 to 31-03-2020. All the ASSOCIATION may look into matter.
Check the website of GConnect for more details…DA Freeze For Central Government Employees – Estimate Notional Loss