Dearness Allowance: Additional DA STOPPED for 11 lakh government employees, pensioners of this state

As various states are reeling under severe cash crunch due to Covid-19 pandemic, governments there have been taking various measures to save money by stopping or not hiking additional Dearness Allowance (DA) of their employees and pensioners. In a latest development, Karnataka government has stopped additional Dearness Allowance (DA) for its employees and pensioners retrospectively from January 1.

"In view of the crisis arising out of the Covid-19 outbreak, additional DA for all state government employees and its pensioners will not be paid since January 1, 2020," state Deputy Finance Secretary D.S. Jogoje said in a notification. The additional instalments of DA due from July 2020 to January 1, 2021 will also not be paid till further order. "DA will continue to be paid at the existing rates," Jogoje said in the order. 

The southern state has about 6 lakh employees on its rolls and around 5 lakh pensioners. 

As per the 6th State Pay Commission recommendation, DA and additional DA are sanctioned to state government employees and pensioners from time to time as per its formula. 

"When the decision to release the future instalment of DA from July 1, 2021 is taken by the Central government, its applicable rates with effect from January 1, 2020, July 2020 and January 1,2021 will be restored prospectively," said the order. 

The employees and pensioners are, however, not entitled to DA arrears from January 1, 2020 to June 30, 2021.

Earlier, in a major decision to manage the fiscal strain caused by Covid-19 relief measures, the Tamil Nadu government had suspended encashment of earned leave by its employees, teachers and others, and froze the dearness allowance, even for pensioners, at the current level till July 2021. Government employees and teachers can surrender and encash 15 days of earned leave every year.