7th Pay Commission Latest News: Days after the Central government’s announcement, the Tamil Nadu government on Monday decided to freeze additional installment of Dearness Allowance for its employees and pensioners till July 2021 and suspended earned leave encashment for a year. The decision from the state government comes as the government is going through severe fiscal crisis due to the COVID-19 pandemic. Also Read - 7th Pay Commission Latest News: Maharashtra Govt to Put on Hold DA, LTC of 12 Lakh Employees For Two Years

Referring to the Centre’s recent order on DA to employees and pensioners, Tamil Nadu also decided to follow the Centre’s decision to put on hold the additional DA payout as well. Also Read - 7th Pay Commission Latest News: SSB Announces Recruitment For Assistant Commandant Post, Get Paid Rs 1,77,500 Monthly

“In view of the severe fiscal crisis arising out of the COVID-19 pandemic, the Tamil Nadu government has decided to freeze the additional Dearness Allowance payout till July 2021,” the order from the state said. Also Read - 7th Pay Commission Latest News: Central Govt Announces Holi Gift For Employees Based in Mathura And Vrindavan, Doubles Their HRA

The order further stated that the additional installments of DA due from July 1, 2020 and January 1, 2021 shall also not be paid.

The order from the state government is applicable to teaching, non-teaching staff in aided educational institutions and employees under local bodies as well.

In another order, the government had said that the periodical surrender of earned leave for encashment for 15 days every year/30 days every two years stands suspended initially for one year to all government employees and teachers.

The government order is applicable for all constitutional/statutory bodies, state corporations, universities, local bodies, commissions, companies and others.

“As and when the decision to release the dearness allowance from July 1, 2021, the rates effective from January 1, 2020, July 1, 2020 and January 1, 2021 would be restored, prospectively, and would be subsumed in the cumulative revised rate effective from July 1, 2021,” the order stated.

Earlier, similar decisions were taken by Uttar Pradesh and Maharashtra government as well soon after the Centre announced to freeze DA to its employees and pensioners.