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DA/DR Impounding by the Central Government

The Government of India has issued an unilateral order on 23.04.2020 vide No.1/1/2020-E.II(B) of Ministry of Finance, Department of Expenditure to freeze the DA/DR of CG Employees and Pensioners up to 30.06.2021 and that not to pay any arrears even after the lifting of the freezing with effect from 1.7.2021. The authoritative and unilateral action of the Government has received widespread condemnation from different organizations of Central Government Employees and Pensioners.

NCCPA as the apex organization of various Pensioners Associations at National level and CGPA affiliates at State level expressed its strong condemnation to the Government over this unilateral impounding of DA/DR. The Government have not taken the facts that even before the said impounding, the NCCPA and its affiliates have been donating to the cause of fighting corona to either the PMNRF or State Chief Ministers’ Relief Funds. In addition there had been a wage cut on the CG Employees and the Pensioners also were requested to offer willingness to recover from Pension towards the relief. The unilateral action of impounding of three installments due from 1.1.2020; 1.7.2020; and 1.1.2021 without any arrears on restoration will be acting very severely on the Pensioners whose livelihood is based on Pension and periodical Dearness Relief to offset the cost of living rise. Recovery of pension from 4% to around 12% Pension for a period of 18 months will be excessively harsh on the senior citizens.

NCCPA has therefore written to the Prime Minister to intervene to cause to rescind the orders of the Finance Minister dated 23.04.2020. The copy of letter addressed to the Honourable Prime Minister is enclosed for the information of our affiliates. Any inaction on the part of the Government will be discussed in our National Executive after the restoration of normalcy and organizational decisions will be taken. All our affiliates are requested to send an identical letter of protest to the Honourable Prime Minister on behalf of their respective organizations.