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Tuesday, January 5, 2021

Payment of Dearness Allowance to Central Government employees



The Secretary General

Confederation of CG Employees and Workers

Subject: Payment of Dearness Allowance to   Central Government employees and Dearness Relief to Central Government pensioners at current rates due to improved covid and financial situation in the country .


                  Vide Office Memorandum dated 23rd April, 2020 of  Government of India Ministry of Finance , Department of Expenditure letter No. 1/1/2020-E-II-B,  the additional  DA for CG employees and DR for pensioners was freezed  from  1st January 2020  till 1st July  2021 due to the reason “view of the crisis arising out of COVID-19”.  These orders are applicable to all Central Government employees and Central Government pensioners. Which has affected both the serving employees and pensioners and especially to those who have retired during the period 1st Jan 2020 to 1st Jan 2021.

               The Covid-19 situation in India has improved considerably and under control with a vast population of the country are unaffected by the Covid-19, The Covid cases in September 2020 was around 95,000 cases daily , on 4th  January 2021 is around17,000 cases which is lowest in six months, with less mortality rate. 

The economy ic situation in the country has also improved compared to April- May 2020 situation, where the industrial production had gone down to minus 57% and in October to plus 3.6 %  Industrial production has vastly improved with a recovery , the financial position of the country has also improved considerably the GST collections has shown a positivity in last four months .


GST collection in rupees cores

March, 2020


September, 2020




November 2020


December 2020


The Goods and Service Tax collection for December 2020 touched a record high of Rs 1.15 lakh crore. This is the highest ever collections since the implementation of the countrywide tax in July 2017.


The Central Government employees have attended their assigned duties even during the pandemic situation, many have lost their sacrificed their life for the nation building, hence there contribution should be taken into the account.

The additional financial implication on account of this increase in Dearness Allowance for additional 11% DA is due which works out to 13,000 crores annually, which is manageable under the existing financial conditions , more over this  will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners who pump this money into the market which also improves the economy considerably and about 30% of the amount spent is collected back by the Government by way of taxes.     

As the Covid situation is under control and economic situation in the country has also improved considerably it is requested to take up the issue of grant of Payment of Dearness Allowance to   Central Government employees and Dearness Relief to Central Government pensioners at current rates which is 28% as on 1st January 2021.

                                                                              Comradely yours


                                                                         Working President





1 comment:

arthur manokaran said...

Thanks comrade for the update and writing the letter explaining the facts.Hope govt responds positively.