The Finance Ministry on Tuesday assured central government employees and pensioners that three pending installments of Dearness Allowances (DA) will be restored as and when the decision to do so is taken. The Finance Ministry stated that the three pending instalments of DA for the central government employees will be "subsumed in the cumulative revised rates effective from 1 July, 2021."
Minister of State for Finance Anurag Thakur, in a written reply to the Rajya Sabha, stated that the Centre had retained more than Rs 35,430.08 crore by freezing the three installments of DA. This had helped in dealing with the COVID-19 outbreak in the country in 2020.
"The three installments of Dearness Allowance and Dearness Relief to central government employees and pensioners due from 1.1.2020, 1.7.2020 and 1.1.2021 was frozen in view of the coronavirus pandemic," the Finance Ministry stated.
Currently, the DA for Central Government employees stands at 17% as it had halted the promised 4% hike till July 2021. The 4% DA hike was expected in accordance with the formula which is based on recommendations from the 7th Central Pay Commission.
The Dearness Allowance hike came as a major relief for nearly 50 lakh employees and over 60 lakh pensioners. However, salary and pension recipients did not get the hiked DA as the Finance Ministry had decided to put a hold on it in April 2020 in order to deal with the COVID-19 crisis.