The Delhi government has put on hold hike in inflation-linked allowance for around 2.2 lakh employees and pensioners till July 2021, following a similar step by the Centre.
The dearness allowance for employees and dearness relief for pensioners were due from January 2020.
The Delhi finance department has issued an order endorsing the central government's order to put on hold hike in DA and DR till July 2021.
"The Centre's order on the issue of DA and DR has been endorsed by the Delhi government and it will also be applicable on Delhi government employees and pensioners," a government official said.
Money saved by the move can be used to combat COVID-19 in the national capital, the official said.
Umesh Batra, general secretary of Delhi government employees welfare association, said that the move will affect around 2.2 lakh state employees and pensioners.
Last month, the Union government had announced a 4 per cent increase in dearness allowance (DA) for its 50 lakh employees and 61 lakh pensioners beginning January 1, 2020. But it recently froze the inflation-linked allowance in view of the coronavirus pandemic. Several states have followed suit.
Delhi government employees and pensioners will continue to receive DA and DR, respectively, at the current rate -- 17 per cent -- till June 30, 2021.