18 Month DA Arrears: In response to the question asked, the Finance Ministry has categorically ruled out the possibility of distribution of Dearness Allowance (DA) and Dearness Relief (DR) arrears, dashing any hopes of 18 months’ DA arrears.
18 Month DA Arrears: A big update has come out for central employees. The Finance Ministry has given its final answer on their 18 months’ DA arrears which were stopped during Covid-19. For the last several days, there was a discussion in the media that the government could take some decision on 18 months’ arrears to central employees and pensioners. Many organizations had also made a demand from the government regarding this. But, now the Finance Ministry itself has clarified what is their stand in this matter. However, earlier, the Finance Ministry had clearly denied this question many times in response. Yet the Minister of State for Finance has given a written reply to the question asked during the monsoon session.
18 Months DA Arrears Hopes Dashed Again
In response to the question asked, the Finance Ministry has categorically ruled out the possibility of distribution of Dearness Allowance (DA) and Dearness Relief (DR) arrears, dashing any hopes of 18 months DA arrears. This question was raised by Rajya Sabha MPs Javed Ali Khan and Ramji Lal Suman.
Question
(a) Is the government actively considering the release of 18 months of dearness allowance/relief of central government employees/pensioners that was withheld during the Covid outbreak?
(b) If yes, what are the details thereof?
(c) If not, what are the reasons for not releasing it, when the economy is the third largest in the world; and
(d) the details of representations received in this regard from the year 2024 till date and the action taken thereon representation-wise?
Answer
Minister of State for Finance (Shri Pankaj Chaudhary)
(a) No, Sir.
(b) The question does not arise.
(c) and (d) The decision to freeze three instalments of Dearness Allowance (DA)/Dearness Relief (DR) payable to Central Government employees, pensioners with effect from 01.01.2020, 01.07.2020 and 01.01.2021 was taken in the context of economic disruption caused by COVID-19 so as to ease the pressure on Government finances. During the year 2024, several representations have been received from Government employees’ associations including the National Council of Joint Consultative Mechanism (NCJCM). Since the fiscal deficit was still being incurred after the financial year 2020-21 on the financial impact of the global pandemic in 2020 and on financing the welfare measures taken by the government, the arrears of dearness allowance / dearness relief were not considered feasible.
DA Hike will be 3% from July
Even though the central employees have been disappointed on the front of DA arrears of 18 months, their dearness allowance is going to increase soon. At present, they are getting 50 percent dearness allowance. But, it will be revised from July 2024. The numbers of how much dearness allowance will increase have come. This time there will be an increase in dearness allowance at the rate of 3 percent. It will be implemented from July 1, 2024. The total dearness allowance / dearness relief for central employees and pensioners will increase to 53 percent. However, it will take time to announce it. It can be announced in September end or October.
