Central govt freezes DA raise for CPSE employees

New Delhi: The Central Government has decided to freeze the raise in the dearness allowance (DA) for employees under Central Public Sector Enterprises (CPSEs), drawing salaries as per the industrial dearness allowance (IDA) pay guidelines from October 1, 2020, to June 30, 2021.

The department of public enterprises issued a circular to inform about the same. It said that the additional instalments of DA due from the month of January to March in 2021 will also not be paid. However, the dearness allowances at the present rates will continue to be paid from July.

The notification by the department said, "As and when the decision to release the future instalments of dearness allowance due from July 1, 2020, is taken by the government, the rates of dearness allowance as effective from October 1, 2020, January 1, 2021, and April 1, 2021, will be restored prospectively."

The notice further added that this will be incorporated with the cumulative revised rate effective from July 1, 2021. It also said that for the period from October 1, 2020, to June 30, 2021, "no arrears" will be paid.

The notification, which was issued on Thursday is applicable in the cases of executives and non-unionised supervisors of CPSEs drawing 2017, 2007, 1997, 1992, and 1987, IDA pay scales.

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