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The Central government on Thursday [23/04/2020] freezes dearness allowance (DA) and dearness relief (DR) for 11 million employees and pensioners w.e.f January 2020 to July 2021, in a bid accumulate fund fight the COVID-19 pandemic.
The new rates of DA and DR as effective from January 1, 2020, July 1, 2020 and January 1, 2021 will be restored after the Government will take decision to release from July 1, 2021 the future installment of DA and DR.
In view of COVID-19 situation, the arrears for the period from January 1, 2020 till June 30, 2021 will not be paid to employees and pensioners.
In March this year, the Cabinet Committee on Economic Affairs had approved a 4 percent hike in DA to benefit 48 lakh Central Government employees and 65 lakhs pensioners with effect from January 1, 2020. The DA was raised from 17 percent to 21 percent and increase in DR was also approved. Following outbreak of COVID-19, it was expected that the Government might suspend disbursement of increased DA to its employees and pensioners.