Increase in the dearness allowance: the central government claims that the demand for a 24% increase in the AD is not true!


Latest news on the dearness allowance: The central government has denied any increase in the High Cost Allowance (DA) recently. The government’s official fact checker, GDP Fact Check, said on Tuesday (December 1, 2020) that a distorted image circulating on social media claimed that the Union Finance Ministry had authorized a 24% increase in the DA. However, the central government has not made such a decision and the claim made in the transformed image is false, the fact-checker said.

The transformed image circulating on social media falsely claims that the central government has not only approved a 24% increase in DA, but has also decided to provide the arrears. The metamorphosed image falsely claims that such a move was announced by Finance Minister Nirmala Sitharaman.

Additional AD pending

In view of the COVID-19 pandemic, the central government has arranged an increase in DA for about 50,000 central government employees. A decision in this regard was announced in April this year. While announcing the suspension of the DA hike, the central government had made it clear that the dearness allowance at the current rate would continue to be paid to central government employees.

“In view of the crisis resulting from COVID-19, it has been decided that the additional payment of the high cost allowance payable to central government employees, high cost aid to central government retirees, due from January 1, 2020, will not be paid,” an office said. Expenditure Department Memorandum, Ministry of Finance reported in April 2020.

Following the decision of the central government, several state governments had also organized an increase in DA for their employees.

In November, the additional DA installments payable to employees of central public sector companies (CPSE) were stopped. He had indicated that the additional tranches of high cost allowances due from 01.01.2021 and 01.04.2021 will not be paid. However, the high cost allowance at current rates (as of 01.07.2020) would continue to be paid.

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