Dearness Allowance hike for the CPSE employees has been frozen by the government from October 1 in 2020 to June 30 in 2021, says a DPE memorandum.
For the employees of central public sector enterprises (CPSEs) who draw salaries as per the industrial dearness allowance (IDA) pay guidelines, the government has decided to freeze the hike in dearness allowance (DA) from October 1 in 2020 to June 30 in 2021.
The latest guidelines would apply to executives and non-unionised supervisors of CPSEs drawing the specified IDA pay scales. The DA rates for those employees who were drawing central dearness allowance pay scales were already frozen, said the government.
A memorandum from the department of public enterprises on Thursday said, "In the view of the crisis arising out of COVID-19, it has been decided that the additional installments of Dearness Allowance payable to employees of Central Public Sector Enterprises drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines, due from 01.10.2020 shall not be paid.”
It further stated that the additional installments of DA from the month of January to March will also not be paid. Although, DA at the current rates effective from July will not be stopped and continued to be paid.
"No arrears from the period from 01.10.2020 till 30.06.2021 shall be paid,” said the memorandum.
Earlier this year in April, the hike in DA for all central government employees which was effective from January was frozen by the finance ministry. The freeze also included the rate hike that is due at the start of the coming year too.
Just a month prior to that, the government had decided to hike DA by 4 per cent from January onwards in retrospect, which brought the effective rate of DA to 21 per cent. The government had said that it was in accordance with the 7th Central Pay Commission and would benefit 48 lakh employees.
Dearness Allowance or DA is something which is paid by the central government to its employees as well as those on pension to counter the inflationary impact. It is an enhancement given to help the employees with the increasing prices and it is revised two times a year on January 1 and July 1.
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