7th Pay Commission Latest News on DA and DR – Important update for over 50 lakh central government employees and 61 lakh pensioners

7th Pay Commission DA and DR: DA or Dearness Allowance and DR or Dearness Relief of 4 per cent for the central government employees and pensioners has been put on hold by the Centre due to the Coronavirus outbreak in India.

ZeeBiz WebTeam | Apr 24, 2020, 12:02 PM IST

7th Pay Commission DA and DR: DA or Dearness Allowance and DR or Dearness Relief of 4 per cent for the central government employees and pensioners has been put on hold by the Centre due to the Coronavirus outbreak in India. The decision will affect around 50 lakh central government employees and 61 lakh pensioners. The combined savings on account of freezing of these installments of DA and DR to central government employees and pensioners would be Rs 37,530 crore in the current financial year and 2021-22. Centre has issued office memorandum in this regard to inform all its central government employees about its decision. DA and DR are paid to government employees and pensioners as per the 7th Pay Commission (7th CPC) report. Photo: Reuters

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Ministry of Finance takes a call

Ministry of Finance takes a call

The Ministry of Finance on Thursday decided to put on hold increment in dearness allowance (DA) for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis. However, DA and DR to central government employees and pensioners at current rates will continue to be paid. Photo: PTI

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Department of Expenditure issues Office Memorandum

Department of Expenditure issues Office Memorandum

The Department of Expenditure informed about the decision through a office memorandum citing, "In view of the crisis arising out of COVID-19, it has been decided that additional installment 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 installment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid." Photo: PTI

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Rs 37,530 crore savings for Central Government

Rs 37,530 crore savings for Central Government

According to the PTI news agency, the combined savings on account of freezing of these installments of DA and DR to central government employees and pensioners would be Rs 37,530 crore in the current financial year and 2021-22. Generally, the states follow the Center order on DA and DR. It is estimated that the savings on suspension of these installments of DA and DR of state government employees and pensioners will be Rs 82,566 crore, the sources said. Photo: PTI

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Rs 1.20 lakh crore combined savings for Centre, states

Rs 1.20 lakh crore combined savings for Centre, states

Thus, the combined savings of the Centre and states will be Rs 1.20 lakh crore, which will help in fighting the battle against COVID-19 and its fallout. The last DA hike for central government employees was effected last month effective January 1. 2020. The Union Cabinet had approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent. With Thursday's decision, this 4 per cent hike has been put on hold. Photo: PTI

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Setback for 1.21 crore beneficiaries

Setback for 1.21 crore beneficiaries

The Narendra Modi Government had announced 4 per cent DA for the 50 lakh Central Government employees 61 lakh pensioners from 1st January 2020 to June 2020. The DA hike for the month of April and January to March arrears was expected to be credited into the April month salary of the central government employees and pensioners. Photo: PTI

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Moratorium on DA, Arrears

Moratorium on DA, Arrears

After this office memorandum issued by the Department of Expenditure, Central Government employees will have to wait for the DA hike benefit and arrears till next notification of the concerned department. Photo: PTI