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DA hike for CPSE employees frozen till June 2021

  November 21, 2020    

Government of India decided to freeze the hike in dearness allowance (DA) from October 1 in 2020 to June 30 in 2021, to employees of central public sector enterprises (CPSEs) who draw salaries as per the industrial dearness allowance (IDA) pay guidelines. This would apply to all executives and non-unionised supervisors of CPSEs drawing the specified IDA pay scales.

A memorandum from the department of public enterprises on Thursday said, "In the view of the crisis arising out of COVID-19, it has been decided that the additional installments of Dearness Allowance payable to employees of Central Public Sector Enterprises drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines, due from 01.10.2020 shall not be paid.”

Government of India already says that the DA rates for those employees who were drawing central dearness allowance pay scales were already frozen. They also mentioned as additional installments of DA from the month of January to March will also not be paid. The freeze is applicable to the rate hike that is due at the start of the coming year as well.

Dearness allowance enhancement given to help the employees with the increasing prices and it is revised two times a year on January 1 and July 1.

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