What is freezing of dearness allowance?

DA is paid by the government to its employees to compensate for the increase in the cost of living due to inflation. In view of the COVID-19 pandemic, the government had frozen three installments of DA/DR payments, which were due on January 1, 2020, July 1, 2020, and January 1, 2021.

How does the government decide DA?

DA or dearness allowance is calculated as a specific percentage of the basic salary which is then added to the basic salary along with other components like HRA (House Rent Allowance) to make up the total salary of an employee of the government sector.

What will be Da in Jan 2022?

7th Pay Commission: Here is everything you need to know Reports state that the government is preparing to hike the DA of Central government employees by another 3\% in January 2022. The current DA that Central government employees are getting stands at 31\%.

Is DA freeze for central govt employees?

The Narendra Modi government on Wednesday increased the dearness allowance (DA) and dearness relief (DR) for Central government employees and pensioners from 17\% to 28\% with effect from July 1, 2021, ending a 18 month long freeze since January last owing to Covid-19 pandemic. 2021.

Is DA freeze for PSU employees?

Background. On November 19, 2020, the DPE had announced the freezing of additional dearness allowance (DA) for executives and non-unionised supervisors of PSUs drawing salaries under certain pay scales till June 30, 2021.

Why is Da given to employees?

Dearness Allowance is paid by the government to its employees as well as a pensioner to offset the impact of inflation. The effective salary of government employees requires constant enhancement to help them cope up with the increasing prices.

How is pensioner DA calculated?

DA is calculated based on their basic salary and the DR is calculated based on their basic pension. For example, if an employee’s basic salary is 18000 and if a pensioner’s basic pension is 9000, then the calculation of DA and DR will be as follows: Basic Salary: 18000 x 21\% = 3780. Basic Pension: 9000 x 21\% = 1890.

Will freezing of Da affect HRA for central government employees?

The letter adds that freezing of DA will have a serious impact of the HRA of the Central Govt. employees, especially with the “manner in which the price for the essential commodities are rocketing sky high, DA is expected to cross 25 percent from July 2020 onwards. “Since the DA is freezed the employees will lose this hike in the HRA as well.

Can government defer or freeze payment of salary/allowances by executive order?

• As per Settled Law, financial difficulty is not a ground for the Government to defer or freeze the Payment of Salary/Allowances or Pension by an executive order.

What does it mean when a company freezes your pay?

Pay freeze, commonly known as salary freeze or pay flattening refers to a company’s policy of maintaining current pay levels for some or all categories of employees for a period of time. A pay freeze can mean “business as usual” for companies that do not typically increase pay.

Is centre’s decision to freeze Dearness Allowance ‘arbitrary’?

The constituent organisations of the National Council (JCM) has written to the Department of Personnel & Training for Information and the Department of Expenditure, Ministry of Finance protesting the Centre’s “arbitrary decision” to freeze dearness allowance (DA) of central government employees up to June 30, 2021.