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COVID-19: DA hike for central Government Employees put on hold

India is going through a 40-day nationwide lock-down, due to the Coronavirus pandemic. This has dealt a huge blow to Indian economy, subsequently putting a strain on our Government’s finances

With that in mind, PM Modi has decided to chair a meeting of the Union cabinet, today, where they will listen to a proposal about putting on hold any more increases for the current year, sources have said. Reviewing India’s response to the pandemic is supposed to be the primary objective, however.

Yesterday, the Centre announced a halt in the increase of dearness allowance (DA) for all its employees. This decision is going to impact as many as 49.26 lakh central government employees and 61.17 pensioners. Earlier, in a march meeting, the cabinet had approved an increase in DA from 4% to 21%.

The Centre raises the DA, twice a year, to account for market inflation. The next revision is scheduled in July.

This marks the first time that the Coronavirus pandemic has directly impacted any central government employee. Earlier, The government had cut salaries of ministers, PM, president and members of parliament by 30% “to meet the exigencies arising out of COVID-19 pandemic”. In addition, the MPLADs scheme has also been suspended for 2 years which will end up saving ₹8000 Crore. Our fight the Coronavirus pandemic will be supported by these measures.

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