Published 15:51 IST, April 23rd 2020
BIG: Centre freezes DA & DR at current rates till July 1,2021 amid COVID-19 crisis
On Thursday, the Centre announced the freezing of DA and DR for Central government employees and pensioners respectively at current rates till July 1, 2021.
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In a big development on Thursday, Centre anunced freezing of Dearness Allowance (DA) for Central government employees and Dearness Relief (DR) for Central government pensioners at current rates. Union Cabinet's decision in March to hike DA and DR rates from 17% to 21% shall t come into force until July 1, 2021. This call has been taken in wake of ongoing vel coronavirus crisis.
It ded that installments of DA and DR due from January 1, 2020, July 1, 2020, and January 1, 2021, shall t be paid. At same time, DA and DR at current rate of 17% will continue to be paid. Moreover, it has been clarified that arrears from January 1, 2020, to June 30, 2021, shall be paid even when Centre decides to release future installment of DA and DR. In such a scenario, Ministry of Finance has promised to restore DA and DR rates applicable from January 1, 2020, prospectively and will be subsumed in cumulative revised rate effective from July 1, 2021. Nearly 1.13 crore families are expected to be affected by this move.
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Cost-cutting measures by Centre
Centre has alrey implemented a number of cost-cutting measures. On April 6, Union Cabinet approved an ordinance to amend ' Salaries, Allowances and Pension of Members of Parliament Act, 1954'. Basically, salaries payable to Lok Sabha and Rajya Sabha MPs have been reduced by 30% till April 1, 2020. President Ram Nath Kovind, Vice President M Venkaiah Naidu and all Goverrs have also voluntarily decided to take a 30% salary cut. MPLS funds were suspended for two years. Information and Brocasting Minister Prakash Javekar stated that Rs.7,900 crore saved from MPLS will go to Consolidated Fund of India.
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15:51 IST, April 23rd 2020