Covid-19 impact: Govt puts on hold DA hike for employees, pensioners

The existing rates of 17 per cent DA/DR will continue to be paid till July 1, 2021. From that day onwards, the new rates of DA/DR will be restored 'prospectively'

The Centre on Thursday froze the dearness allowance (DA) for its 4.8 million employees and 6.5 million pensioners at 17 per cent till July 1, 2021, to partly offset the increase in spending on health in light of the coronavirus disease (Covid-19) crisis.
 

This will save the Centre over Rs 37,000 crore, and if states follow suit, the combined savings will be Rs 1.2 trillion.
 

The move comes a month after the Union Cabinet approved an increase in DA to 21 per cent.
 

“In view of the crisis arising out of Covid-19, it has been decided that the additional installment