Dearness Allowance may be disbursed prospectively: Report

Moneycontrol had earlier reported that Dearness Allowance (DA) might be paid at a rate of 28 percent, significantly higher than the current rate of 17 percent.

The government might issue Dearness Allowance (DA) to Central government employees prospectively rather than retrospectively with arrears, NDTV reported.

Cost indexation is likely to take place on June 30, the report said citing finance ministry sources.

Moneycontrol could not independently verify the story.

Also read - 7th Pay Commission: Here is how much salary Central government employees will get from July 1

Moneycontrol had earlier reported that DA might be paid at a rate of 28 percent, significantly higher than the current rate of 17 percent.

In a written reply to the Rajya Sabha on March 9, Minister of State (MoS) for Finance Anurag Thakur said that pending DA and DR instalments would be restored prospectively from July 1.

In April 2020, the Ministry of Finance had put a stay on the release of DA and Dearness Relief (DR) instalments.

The additional instalments of DA for over 50 lakh central government employees and DR for 61 lakh pensioners - due on January 1, 2020, July 1, 2020 and January 1, 2021 - were frozen due to the COVID-19 pandemic.