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The central government on Thursday took a major decision in view of the impact the Koro epidemic has had on the country's economy. The dearness allowance to be met by central employees and pensioners has been withheld till July 2021. However, the old government will continue to pay the allowance at the old rate. This means that the recent increase will no longer apply.

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The finance ministry on Thursday said that an additional portion of the dearness allowance received by central employees from January 1, 2020 would not be paid. Accordingly, the Central Government has also decided not to pay the dearness relief allowance given to pensioners from January 1, 2020.

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              Allowances paid from 1 July 2020 will not be paid.
The Finance Ministry said that the inflation allowance and inflation relief allowance given from July 1, 2020 and January 1, 2021 will not be paid. Thus, dearness allowance will not be paid to Central Government employees and pensioners till June 2021. The government changes the inflation allowance every six months. The inflation allowance is paid on January 1 and July 1 of each year only after the change. The decision not to provide inflation allowance will affect more than one crore central employees and pensioners. This includes 50 lakh pensioners.
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