Yesterday a big decision is taken by the central government which is going to impact a million of its employees and pensioners. The increased 4% in DA/DR is put on hold till July 2021. Last month the government had taken a decision to increase the DA from 17% to 21% from January 2020. But now looking at the current economic situation they have deferred this.
The Country is in complete lockdown for the last 30 days. Most of the factories are non-functioning right now. Many small and medium companies are on the edge of the shutdown. People are losing their job. Migrant laborers return to their native place and if even factories open after MAY 3. They will face a scarcity of manpower. World bank and other major rating agencies predicted that the growth rate will be in just a positive bracket. Looking at such a grave situation the central government has taken this decision.
This came as a big shock for the central government employees who were happy from the hike. But now feel disappointed after know that it is deferred till July 2021. Till July 2021 the current rate of 17% DA will be given. There will be no arrears provided for the difference between 17% and 21% which will be accumulated for the period between January 2020 and July 2021.
The reason behind this decision is the government is trying to save some money through this decision. Currently, the government is requiring the fund to buy test kits, medicine and to feed the migrant laborers. As per the finance ministry, government will save 27,000 crore rupees by this decision. This amount can be diverted toward upgrading health facilities and run different welfare schemes for the poor.