Central government employees and pensioners will get full benefits of dearness allowance starting July 1, with all the three pending installments being restored prospectively, Minister for State for Finance, Anurag Thakur said in Parliament on Tuesday.
Three installments of DA for central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, were frozen in view of the Covid-19 pandemic.
The Union Government has informed the Rajya Sabha in a written reply that as and when the decision to release the future installment of DA is taken, the rates of DA as effective from 01-01-2020, 01-07-2020, and 01-01-2021 will be restored prospectively.
The decision now to restore it from July 2021 would benefit about 50 lakh central government employees and more than 65 lakh pensioners.
With the suspension of DA revision for one and half years, the government saved a total of Rs 37,530.08 crore that helped it to augment resources required to tide over the economic impact of the Covid-19 pandemic through various stimulus measures.