Bengaluru, Reeling under severe cash crunch in Covid-19 times, the beleaguered Karnataka government on Tuesday stopped additional Dearness Allowance (DA) for its employees and pensioners retrospectively from January 1, an official said on Tuesday.

"In view of the crisis arising out of the Covid-19 outbreak, additional DA for all state government employees and its pensioners will not be paid since January 1, 2020," state Deputy Finance Secretary D.S. Jogoje said in a notification here.

The additional instalments of DA due from July 2020 to January 1, 2021 will also be not paid till further order. "DA will continue to be paid at the existing rates," Jogoje said in the order.

The southern state has about 6 lakh employees on its rolls and around 5 lakh pensioners.

As per the 6th State Pay Commission recommendation, DA and additional DA are sanctioned to state government employees and pensioners from time to time as per its formula.

"When the decision to release the future instalment of DA from July 1, 2021 is taken by the Central government, its applicable rates with effect from January 1, 2020, July 2020 and January 1,2021 will be restored prospectively," said the order.

The employees and pensioners are, however, not entitled to DA arrears from January 1, 2020 to June 30, 2021.