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Karnataka Government Stopped Additional Dearness Allowance (DA) for its Employees and Pensioners in Wake of Cash Crunch

Team SoOLEGAL 6 May 2020 5:15pm

Karnataka Government Stopped Additional Dearness Allowance (DA) for its Employees and Pensioners in Wake of Cash Crunch

The Karnataka government decided not to pay additional installments of Dearness allowance (DA) payments to government employees and pensioners with effect from January 1, 2020 in view of the crisis arising out of the Covid-19 pandemic.

 “The additional installments of Dearness Allowance with effect from January 1, 2020 payable to State Government employees and pensioners including employees and pensioners on UGC/ICAR/AICTE/NJPC scales of pay shall not be paid,” the government order issued by the Finance Department read.

The additional installments of Dearness Allowance due from July1, 2020 to January 1, 2021 will also be not paid till further order. “DA will continue to be paid at the existing rates,” the government order said.

The southern state has about six lakh employees on its rolls, and about five lakh pensioners.

According to the 6th State Pay Commission recommendation, DA and additional DA are sanctioned to state government employees and pensioners from time to time as per its formula.

“When the decision to release the future installment of DA from July 1, 2021 is taken by the Central government, its applicable rates with effect from January 1, 2020, July 2020 and January 1, 2021 will be restored prospectively,” the order said.

It also stated that the employees and retirees are not entitled to the dearness allowance arrears for the period from January 1, 2020 till June 30, 2021.

These orders will apply to full-time government employees, zilla panchayats employees as well as full-time employees of aided educational institutions and universities on regular pay scales.

These orders shall also apply to employees covered by the Karnataka Daily Wage Employees Welfare Act, 2012 and also to employees of boards, corporations, local authorities; government employees and autonomous industries under the control of the state government whose DA order is regulated with reference to orders given from time to time by the state government.



Tagged: Karnataka Government   Dearness Allowance   Employees   Pensioners   Covid-19   pandemic  
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