Tamil Nadu govt suspends earned leave encashment, freezes DA till july 2021

Officials say the move will help the govt save over Rs 7,000 crore at a time when Covid-19 has hit its finances

The Tamil Nadu government has decided to suspend encashment of Earned Leave for its officials, teachers and other staff and has also frozen their dearness allowance at the current level till July 2021.

The decisions were taken to manage the fiscal strain due to Covid-19 relief measures, said the state Government. According to State government officials, the move will help the government save over Rs 7,000 crore at a time when Covid-19 has hit its finances.

Under the current rules, Government employees and teachers can surrender and encash 15 days every year or 30 days every two years of their Earned Leave. The government has suspended this facility, initially for a year, in view of the fiscal stress arising from the Covid-19 pandemic, according to the Government Order.

"All surrender requests and bills pending as on date irrespective of their stage of Sanction and disbursement shall not be processed. In cases where sanction orders have been issued, they are to be cancelled and Earnted Leave re-credited to the leave account of the respective employees," said the order issued by State Chief Secretary K Shanmugam. The order is also applicable for all Constitutional/Statutory bodies, state corporations, universities, local bodies, commissions, companies and others.

Similarly the government has also frozen the dearness allowance for its employees and pensioners at the current rate till July 2021.

The dearness allowance for state government employees and others are similar to that of central government employees and others, said in the GO.

The additional instalment of dearness allowance to its employees, pensioners and others due from January 1, 2020 would not be paid.

The dearness allowance due from July 1, 2020 and January  1, 2021 would not be paid.

But the dearness allowance at the current rates will continue to be paid.

According to the government, as and when the decision to release the dearness allowance from July 2021, the rates effective from January 1.2020, July 1, 2020 and January 1, 2021 would be restored prospectively and would be subsumed in the cumulative revised rate effective from July 1, 2021.

The decision is applicable to teaching and non-teaching staff working in aided educational institutions, employees under local bodies, employees governed by UGC and AICTE scales of pay. 

The new order will also be applicable to teachers/physical education directors, librarians in government and aided polytechnics, special diploma institutions, village assistants, noon meal organisors, Anganwadi workers, cooks, helpers and others.