Centre is mulling to to put on hold Dearness Allowance (DA) hike due to economic pain from the coronavirus pandemic spread more widely in India, according to the Finance Ministry source.
The Union Cabinet on March 13, 2020 approved the increase in the Dearness Allowance for central government employees by 4 per cent from 17 per cent to 21 per cent to be effective from January 1, in accordance with the accepted formula based on the 7th Pay Commission recommendations.
The employees and pensioners still do not get DA hike as the government did not issue the order in this regard since the cabinet approval.
Apart from DA hike hold, Central Government Employees will face one day salary cut for almost one year.
Cabinet Secretary Rajiv Gauba has written to secretaries in various ministries and departments asking them to urge employees — as well as those in PSUs under various ministries — to make voluntary contribution to PM CARES Fund. The letter was sent on April 16.
Revenue Department, Ministry of Finance issued a circular on April 17, asking employees to contribute voluntarily to the PM CARES Fund with an opt-out clause.
“It has been decided to appeal (to) all officers and staff of Department of Revenue to contribute their one day’s salary every month till March 2021…”
However, the Circular also said, “Any officer or staff having objection to it may intimate Drawing and Disbursing Officer, Department of Revenue in writing mentioning his/her employee code latest by 20.04.2020.”
According to above, the employees of all other central government departments, except those involved actively in the fight against coronavirus, may also have to contribute one day’s salary from their monthly salary to the PM CARES Fund.
Often, when the economy runs into trouble, it goes through a slow glide from good times to bad. Other times, it is more like a fast car slamming on the brakes.
A potential coronavirus recession looks more and more like the second situation — hence, the central government employees will face more salary cut, job cut in future.