Dearness Allowance Likely To Be Disbursed Prospectively: Finance Ministry Sources

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Dearness Allowance: Government sources say that it might be given prospectively

The Government is probably going to provide the dearness allowance (DA) to central authorities staff from July 1, 2021 prospectively, fairly than retrospectively with arrears.

According to Finance Ministry sources, price indexation is prone to happen on June 30 and the share is anticipated to be round 28 per cent.

They additional identified that a lot will rely on indexation, as DA enhance can’t be carried out with retrospective impact.

Central authorities staff get a DA of 17 per cent at current. This grew to become efficient from July 2019 with additional revision being due from January 2020. However additional hikes in DA have been withheld as a result of coronavirus pandemic.

The three installments of dearness allowance, due on January 1, 2020, July 1, 2020 and January 1, 2021, have been frozen as a result of Coronavirus pandemic.

There have been expectations amongst lakhs of central authorities staff and pensioners that DA can be paid to them on retrospective foundation.



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