To save money to combat COVID-19 in the national capital, Delhi government has taken a major decision. The Delhi government has put on hold a hike in inflation-linked allowance for around 2.2 lakh employees and pensioners till July 2021. The big step follows a similar step by the Centre. The Delhi finance department has issued an order endorsing the central government's order to put on hold hike in DA and DR till July 2021.

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Delhi government employees and pensioners will continue to receive DA and DR, respectively, at the current rate -- 17 per cent -- till June 30, 2021. The dearness allowance for employees and dearness relief for pensioners were due from January 2020.

Delhi government order

"The Centre's order on the issue of DA and DR has been endorsed by the Delhi government and it will also be applicable on Delhi government employees and pensioners," Delhi government official said. Money saved by the move can be used to combat COVID-19 in the national capital, the official said.

Families of 2.2 lakh Delhi employees and pensioners hit

Umesh Batra, general secretary of Delhi government employees welfare association, said that the move will affect around 2.2 lakh state employees and pensioners.

Centre's move

Last month, the Union government had announced a 4 per cent increase in dearness allowance (DA) for its 50 lakh employees and 61 lakh pensioners beginning January 1, 2020. But it recently froze the inflation-linked allowance in view of the coronavirus pandemic. Several states have followed suit.

"In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid...The additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid," the Department of Expenditure said in an office memorandum.