7th Pay Commission: In the wake of the coronavirus crisis, CM Manohar Lal Khattar-led Haryana government decided to freeze dearness allowance (DA) of its employees and dearness relief (DR) of all pensioners at current rate till July next year, an official statement by the Haryana Finance Department said.
"In view of the crisis arising out of COVID-19, it has been decided that additional instalment of Dearness Allowance payable to Haryana Government employees and Dearness Relief to Haryana government pensioners, due from January 1, 2020 shall not be paid," the statement by the ministry said on Monday.
The state government further announced that the additional instalments of Dearness Allowance and Dearness Relief, which were due from July 1, 2020, and January 1, 2021, also would not be paid.
Haryana Government issues order freezing Dearness Allowance (DA) & Dearness Relief (DR) for state government employees & pensioners respectively, at current rates till July 2021, due to #COVID19. pic.twitter.com/TzmzAaFnwr— ANI (@ANI) July 7, 2020
Although the state government will continue to pay both DA and DR at a rate of 17%, employees and pensioners will not receive the arrears of these allowances which were due from 1 July 2020, and 1 January 2021.
"As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from July 1, 2021 is taken by the government, the rates of Dearness Allowance and Dearness Relief as effective from January 1, 2020, July 1, 2020, and January 1, 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from July 1, 2021. No arrears for the period from January 1, 2020 till June 30, 2021, shall be paid," it further said.
The Central government had put freezed hike in inflation-linked allowance. The freezing of DA/DR till July 2021 will help the Centre save ₹37,500 crore and the states ₹82,500 crore. The corpus will help the government fight the covid-19 pandemic and may offer it some room to announce a stimulus package.