DA Hike: 18-month DA arrears to Government Employees and Pensioners, FM receives proposal: Amidst the ongoing debate over the 18-month suspension of dearness relief (DR) and dearness allowance (DA) due to the COVID-19 epidemic, an important question comes up – Will the central government employees and pensioners to get arrears for the dearness allowance (DA) and dearness relief (DR) that were halted for 18 months during the COVID-19 pandemic? In a recent development, Bharatiya Pratiksha Mazdoor Sangh General Secretary Mukesh Singh in a letter to Finance Minister Nirmala Sitharaman urged the Central Government to release the 18-month-old suspended DA arrears .
The Central Government suspended the payment of DA and DR for 18 months, from January 2020 until June 2021, following the COVID-19 epidemic. Previously, in response to a written question in the Lok Sabha, Pankaj Chaudhary, the Minister of State in the Ministry of Finance, stated that “the negative financial impact of the pandemic in 2020 and the funding of the government’s welfare measures having a fiscal spillover beyond FY 2020-21, make arrears of DA/DR, which mostly relate to the challenging FY of 2020-21, not regarded as feasible.”
In his letter, Singh said, I well comprehend the difficulties caused by the COVID-19 epidemic and the consequent economic disruptions that resulted in the suspension of three Dearness Allowance (DA) and Dearness Relief (DR) installments for the fiscal years 2020–21. However, it is encouraging to see an improvement in our country’s financial situation as we progressively recover from the pandemic’s effects.
He continues, saying, “I want to emphasize the important contributions that all government workers and retired personnel made during the difficult epidemic days. Their persistent commitment and diligence were crucial in guaranteeing the seamless operation of vital services and aiding the country’s battle against COVID-19.
In light of the better financial situation and the important role that government employees play, I respectfully ask that your office reconsider the decision to release the three seized Dearness Allowance installments during the next budget session. The accumulated cash can now be distributed to the worthy recipients after being briefly withheld owing to previous financial difficulties.”
Dearness allowance is a crucial component of the salary of government employees and pensioners, designed to mitigate the impact of inflation. The effective salary of government employees is periodically revised to cope with rising inflation. The Union government revises DA twice every year—in January and July. Notably, Dearness Allowance varies among employees based on whether they work in the urban sector, semi-urban sector, or rural sector.