Only after the corona virus pandemic had spread in the country, the Modi government at the Center had already announced that dearness allowances would not be paid to central employees and pensioners before June 2021. The government had already made it clear that it would stop cutting dearness allowance only after the stipulated deadline. If the government does so, the pensioners will also get an increased pension along with the increased salary of the employees.
Dearness allowance increases every six months
However, every year the dearness allowance of central employees is announced in July, but this time due to the outbreak of corona virus epidemic in the country, the Modi government announced not to increase dearness allowance in the month of April itself. Keeping in view the fluctuations in the prices of the market, the government decides to increase the dearness allowance for employees after every six months, so that their standard of living can be improved.
In the Coronavirus pandemic, the central government had banned dearness allowance due to lack of economic activity. According to the 7th Pay Commission, dearness allowance should have been given at 21%, but currently this allowance is being given at the rate of 17 percent. The central government has made this arrangement till June 2021.
Earlier in March, the cabinet had increased the dearness allowance by 4 percent. Usually, the government changes the DA twice a year to compensate for the increase in prices. This is another attempt to cut government spending. Earlier, a 30% reduction in the salaries of ministers, PM, President and Members of Parliament was also announced. His MPLADs scheme has also been suspended for two years to allocate more funds to fight COVID-19.
