As the government's finances are already under stress due to the coronavirus pandemic, the finance ministry has today said that dearness allowance for central government as well as dearness relief extended for central government pensioners has been put on hold till July next year.
Nonetheless, DA and DR at the current prevailing rates shall continue to be given.
"In view of the crisis arising out of Covid-19, it has been decided that the additional installment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1st January, 2020 shall not be paid. Additional installments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid," the Ministry of Finance said in a memo.
Further, whenever the decision in respect of releasing the future installment of DA and DR becomes due from July 2021 is taken, the rates will be announced and accommodated in the cumulated rate that comes into effect July 2021.
Also, on the sidelines it has been clarified that there has been no reduction in central government pensions.
DA is revised twice a year to make up for the increase in cost of living. In the last hike, DA and DR rate was increased to 21% of basic pay or pension.