Centre May Put Hike in Dearness Allowance For Central Govt Employees on Hold Due to Lockdown: Report

New Delhi: To review the coronavirus situation in the country, Prime Minister Narendra Modi will on Wednesday hold a meeting of the Cabinet Committee. Media reports suggest that in the meeting, the cabinet may clear a proposal to not increase the dearness allowance of Central government employees and pensioners. Also Read – Good News! Cabinet Approves 4% Increase in Dearness Allowance for Central Govt Employees

Notably, the Centre had last month increased the dearness allowance (DA) of central government employees by 4 per cent from the existing 17 per cent. If reports are to be belied, then this decision to increase their DA has been kept on hold amid the nationwide lockdown in the wake of the coronavirus outbreak. Also Read – 7th Pay Commission Latest News Today: 5% Dearness Allowance Hike For Himachal Pradesh State Employees

Reports further suggested that the DA will be kept on hold as the government revenue has been worst hit by the pandemic. The Centre might plan to increase the DA and consider giving arears next year once the economic situation of the country improves. Also Read – 7th Pay Commission Latest News: Gujarat Govt Hikes Dearness Allowance by 5%, to Benefit 9 Lakh Employees

However, the decision of the cabinet committee is going to affect over 54 lakh central government employees and 65 lakh pensioners across the country.

The development comes as the cabinet secretary has already written to all state governments to contribute one day’s salary to the PM CARES fund.

The economy of the country has been worst hit by the lockdown which was announced by Prime Minister Narendra Modi to tackle the spread of coronavirus in the country. To revive the economy, the Centre on Monday, however, allowed some economic activities to start in the country while planning a staggered exit from the lockdown.