Big Relief Central Government Employees! No Deduction in Dearness Allowances under 7th Pay Commission; More Details Inside

Central Government Employees Latest News: A lot of discussions have been going-on in social media regarding deduction on certain allowances like HRA, OTA, LTC, Leave Encashment, Travel allowance, etc. amid dearness allowance (DA) freeze. This information has led the Press Information Bureau (PIB) to come forward and issue a clarification in this regard.

As per the PIB fact check process, there was no proposal at the Centre to deduct any allowances of the central government employees. It confirmed that any such news was 'fake news.'

Adding to it, the PIB has issued a press statement in this concern & said, "Fact Check Unit of Press Information Bureau has clarified in a tweet that Central Government is not going to deduct allowances of Central Government Employees. The tweet was a fact check on a media report speculating that Government was planning this move in response to the coronavirus crisis."

Central Government Employees Dearness Allowance:

The central government allowance deduction began to hit on social media & few mainstream media after the Ministry of Finance on Thursday has decided to put on hold increment in DA for 50 lakh CG employees & 61 lakh pensioners till July 2021 amid the Covid-19 crisis. But, the good news is that the Dearness Allowance and DR will continue to be paid to central government employees & pensioners at current rates.  

The central government employees and pensioners combined savings on account of freezing of these instalments of DA and DR would be Rs 37,530 crore in the current FY and 2021-22. Though generally, the states follow the Center order on DA and DR. As per the sources, it can be assumed that the savings on suspension of state government employees & pensioners of these instalments of DA and DR will be Rs 82,566 crore. Hence, the total combined savings of the Centre & States will be Rs 1.20 lakh crore, which will help to fight against covid-19 and its fallout.

Central government employees can note that the Union Cabinet had approved a 4% increase in DA for government employees & pensioners to 21%. But due to Thursday's decision, this 4% hike has been put on hold.