New Delhi, June 16: The lockdown imposed to contain coronavirus pandemic had a consequential effect on the economy. The GDP was nearly grounded and ran into negative for the period of hard lockdown, when non-essential economic activities were barred. The fiscal constraints which have emerged minimises the score for the government to revise minimum wages in the near future. 7th Pay Commission: After Delhi HC's Dismissal of Plea, Government Employees and Pensioners Still Hopeful of DA, DR Hike.
A section of the employees were hopeful that entry-level minimum salaries may be revised after the Union Budget of 2020-21, as per reports. Notably, the government had not issued any statement on whether this long-pending demand would be considered.
With the lockdown imposed, the chances of revising the minimum wages was further minimised. Not only the entry-level pay, the increment in dearness allowance and dearness relief for pensioners and employees, respectively, would also not be hiked.
While the issue of minimum wages was not in consideration, the DA and DR hike was scheduled in July this year. But the outbreak of coronavirus and the widening of fiscal deficit forced the government to postpone the increment of the two key allowances till July next year.
"In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid," the Department of Expenditure said in a statement last month.
An employees' body had subsequently moved the Delhi High Court to challenge the government's decision. The bench, however, refrained from ruling in the petitioner's favour. The court ruled that the government is under no obligation to disburse the DA, DR hike in a time-bound manner.
(The above story first appeared on LatestLY on Jun 17, 2020 12:10 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).