Increase in DA from January 2020 for Central Government Employees may be put on hold

Increase in DA from January 2020 may be put on hold – As per the news items in popular news portal such as Economic Times, Moneycontrol etc, Union Cabinet meeting expected to be convened on 22nd April 2020 will decide DA Freeze.

It is reported by leading news portals that Govt sources indicated them about increase in DA for Central Government Employees to be put on hold to meet out steep increase in Govt Expenditure relating to COVID-19 outbreak.

Earlier Union Cabinet approved 4% increase in DA for Central Government Employees from January 2020.

The government’s tax revenues have plummeted because of the Covid-19 lockdown while expenses have shot up because of the support provided to the vulnerable groups.

This will impact about 49.26 lakh central government employees and 61.17 lakh pensioners.

The government revises dearness allowance twice a year to compensate for the rise in prices. Next revision is now scheduled in July.

This is the first Covid-19 impact on central government employees. The government had earlier cut salaries of ministers, PM, president and members of parliament by 30%. In addition, there MPLADs scheme has also been suspended for two years to provide more funds to fight the coronavirus pandemic. The total savings on the scheme would be about RS 8,000 crore.

Many states have already announced a reduction in salaries of their employees.

Source: Economic Times