Govt Announces Freezing Of Dearness Allowance (DA) Hike For CPSE Employees

The Department of Public Enterprises (DPE) said on Thursday that there will be a freeze till 30 June 2021 on additional dearness allowance for executives and non-unionised supervisors of central public sector enterprises (CPSEs) drawing salaries under certain pay scales.

"In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to employees of CPSEs drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines, due from October 1, 2020, shall not be paid," the department said in a memorandum.

Additional instalments of DA due from 1 January 2021 and 1 April 2021 will also not be paid, the department said. However, DA at current rates (with effect from 1 July 2020) will continue to be paid, said the DPE's circular.

"As and when the decision to release the future instalments of dearness allowance due from July 1, 2020, is taken by the government, the rates of dearness allowance as effective from October 1, 2020, January 1, 2021, and April 1, 2021, will be restored prospectively," it added.

Arrears from the period from 1 October 2020 till 30 June 2021 shall not be paid.

It said the guidelines announced on Thursday are applicable in cases of executives and non-unionised supervisors of CPSEs drawing 2017, 2007, 1997, 1992 and 1987, IDA (industrial dearness allowance) pay scales.

DA rates in case of CPSE employees drawing CDA (central dearness allowance) pay scales have already been frozen.

The decision to freeze increment in DA for about 50 lakh central government employees and 61 lakh pensioners till July 2021 was taken by the finance ministry in April, in light of the COVID-19 crisis.