Govt freezes Dearness Allowance hike for CPSE employees till June 30

New Delhi: The central government said on Thursday (November 19) that it has decided to freeze the hike in dearness allowance (DA) for employees of central public sector enterprises (CPSEs) drawing salaries as per the industrial dearness allowance (IDA) pay guidelines from October 1, 2020, to June 30, 2021.
“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,” said a circular from the department of public enterprises.
Additional installments of DA due from January and March next year shall also not be paid, it said. The DA at the current rates effective from July will continue to be paid.
However, dearness allowance at current rates (with effect from July 1, 2020) will continue to be paid, said the DPE’s circular.

“As and when the decision to release the future instalments of dearness allowance due from July 1, 2020, is taken by the government, the rates of dearness allowance as effective from October 1, 2020, January 1, 2021, and April 1, 2021, will be restored prospectively,” DPE said.
This will be subsumed in the cumulative revised rate effective from July 1, 2021, it added.

The DPE also said “no arrears” for the period from October 1, 2020, to June 30, 2021, will be paid.
It said the guidelines announced on Thursday are applicable in cases of executives and non-unionised supervisors of CPSEs drawing 2017, 2007, 1997, 1992, and 1987, IDA (industrial dearness allowance) pay scales.

DA rates in case of CPSE employees drawing CDA (central dearness allowance) pay scales have already been frozen.
In April, the finance ministry decided to put on hold an increment in dearness allowance (DA) for about 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.