DA Hike Alert: Will Central Govt Employees, Pensioners Receive Arrears For 18-Month Dearness Allowance

7th Pay Commission Dearness Allowance: In a big update for the government employees and pensioners of the country, there are speculations that the central government employees will get arrears for the Dearness Allowance (DA) and Dearness Relief (DR) which was suspended for 18 months during the COVID-19 pandemic.

According to the Economic Times report, in a letter addressed to Finance Minister Nirmala Sitharaman, Mukesh Singh, General Secretary, of Bharatiya Pratiksha Mazdoor Sangh, asked the Central Government to release the DA arrears of 18 months suspended earlier. It is believed that this recommendation has been made assuming that the Modi government at the Center can fulfill this demand to woo crores of government employees and pensioners.

In his letter, Singh reportedly said, "I fully understand the challenges posed by the COVID-19 pandemic and the resulting economic disruptions that led to the freezing of three installments of Dearness Allowance (DA) and Dearness Relief (DR) for the fiscal years 2020-21. However, as our nation is gradually recovering from the impact of the pandemic, it is heartening to witness an improvement in the financial position of our country.

He further adds, "I would like to highlight the significant contributions made by all government employees and retired personnel during the challenging times of the pandemic. Their unwavering dedication and hard work were instrumental in ensuring the smooth functioning of essential services and supporting the nation's fight against COVID-19.

Considering the improving financial scenario and the pivotal role played by government employees, I kindly request your esteemed office to review the decision on the release of the seized three installments of Dearness Allowance at the upcoming budget session. The accumulated amount, which was temporarily withheld due to the fiscal constraints of the past, can now be disbursed to the deserving beneficiaries."

The Central Government stalled the payment of DA and DR for 18 months from January 2020 to June 2021 amidst the COVID-19 pandemic. Earlier, in a written reply to a query in Lok Sabha, Pankaj Chaudhary, Minister of State in the Ministry of Finance, said: "arrears of DA/DR, which mostly relate to the challenging FY of 2020-21, are not regarded as feasible due to the negative financial impact of the pandemic in 2020 and the funding of the welfare measures implemented by the government having a fiscal spillover beyond FY 2020-21."

Latest DA and DR for Government employees, pensioners

Dearness Allowance for Central Government employees and DR for Central Government pensioners was hiked from 42% to 46%. The revised rate will be applicable from July 1, 2023. This move benefits around 48.67 lakh central government employees and 67.95 lakh central government pensioners.

What is Dearness Allowance?

Dearness Allowance is paid by the government to its employees and pensioners to offset the impact of inflation. The effective salary of government employees requires constant enhancement to help them cope with the increasing prices. The Union government revises DA twice a year - in January and July.