New Delhi: The Centre on Thursday has suspended the disbursement of the increased dearness allowance to the employees and the pensioners. Here’s what it means: Also Read - Mohammed Shami Confident of Getting Reverse Swing Despite Saliva Ban in Cricket Due to COVID-19

1. Central government employees were supposed to get a hike in the dearness allowance from January 1, 2020. The Centre won’t pay the hike. Also Read - Coronavirus: With 2,287 New Cases Maharashtra at 72,300; Gujarat Reaches 17,632 With 415 Fresh Cases



2. The DA rates will be the same until next July. Also Read - Bangladesh Records First COVID-19 Death in Rohingya Refugee Camp

3. There will be no arrears for this period — from January 1, 2020, to June 30, 2021.



4. Additional installments of dearness allowance and dearness relief due from July 1, 2020, and January 1, 2021, will also not be paid.

5. This will impact 49.26 lakh central government employees and 61.17 lakh pensioners.

6. There is a need for a major increase in the expenditure on health as well as on welfare measures for various affected sections of the society including the poor and the vulnerable, the notification issued today said.

7. The rate of DA and DR (Dearness Relief) will be restored from July 1, 2021, onwards.

8. The new rate will be a cumulative revised rate.

9. This will help the government save Rs 37,350 crore in the current and the next fiscal year.

10. If the state governments, too, follow this step, they will be able to save Rs 1.20 lakh crore.

The decision to hike DA was taken in March and was supposed to be implemented from January 2021. DA is received by government employees and pensioners to compensate for the inflation. The rate is revised twice — once in January, once in July. Prior to this, MLAs and MPs salaries were cut in the view of the economic situation arising out of the pandemic.