DA & DR as effective from 01.01.2020, 01.07.2020 and 01.01.2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021.
Government of India
Ministry of Finance
Department of Expenditure
Rajya Sabha
Unstarred Question No. 1669
To be answered on Tuesday, 9th March, 2021
Phalguna 18, 1942 (Saka)
Freezing of DA
1669: Shri Naranbhai J. Rathwa:
Will the Minister of Finance be pleased to state:
a) whether freezing of Dearness Allowance (DA) to Central Government employees/pensioners till July, 2021 has subjected them to undue hardship;
b) if so, the reasons for not restoring DA to Central Government Employees and pensioners before July, 2021; and
c) whether Central Government employees and pensioners are not entitled to three installments of DA and, if so, whether Government would also release these installments and, if not, reasons therefor?
Answer
Minister of State in the Ministry of Finance (Shri Anurag Thakur)
(a,& b) In view of the crisis arising out of COVID-19 pandemic, the Government has decided to freeze three installments, of Dearness Allowance and Dearness Relief to Central Government employees and pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021. The amount Rs.37530.08 crores saved on this account will help to tide over the economic impact of COVID-19 pandemic
(c) As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates. of DA as effective from 01.01.2020, 01.07.2020 and 01.01.2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021.
Source: Rajya Sabha