New Delhi: The central government may soon announce an increase in dearness allowance (DA) in the last week of September or the first week of October. According to reports, this time the central government may announce an increase of 3-4 percent for employees. The increase in dearness allowance will be effective from July 1. Last year also, an increase in dearness allowance was announced in the first week of October.
During the last dearness allowance hike in March 2024, the government had increased dearness allowance by 4 per cent to 50 per cent. Along with this, dearness relief (DR) for pensioners was also increased by 4 per cent. Dearness allowance and dearness relief are increased twice a year from January and July. Dearness allowance is given to central employees, while dearness relief is given to pensioners.
What will happen to the pending DA dues during Covid?
During the recent monsoon session of Parliament, Union Minister of State for Finance Pankaj Chaudhary made it clear that the government is unlikely to release 18 months of DA and DR arrears that were withheld during the Covid-19 pandemic. When asked if the government is considering releasing the 18 months of pending DA/DR of central employees and pensioners, which was withheld during Covid-19, Minister Pankaj Chaudhary said no in response to a question.
In view of the financial difficulties due to the Covid pandemic, it was decided to stop DA in three installments of January 2020, July 2020 and January 2021. Central employees are being asked for this 18 months' arrears. But the government has no plans to disclose this amount right now.