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18 Months 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 the 18 months arrears to be given to central employees and pensioners. Many organizations had also demanded from the government regarding this. But, now the Finance Ministry itself has clarified what is its stand in this matter. However, before this, the Finance Ministry has clearly refused to answer this question many times. Still, the Minister of State for Finance has given a written answer to the question asked during the monsoon session.
Hopes for 18 months DA arrears shattered again
In response to the question, the Finance Ministry has categorically ruled out the possibility of distribution of arrears of Dearness Allowance (DA) and Dearness Relief (DR), leaving no hope of distribution of DA arrears of 18 months. This question was raised by Rajya Sabha MPs Javed Ali Khan and Ramji Lal Suman.
Question
(a) Whether the Government is actively considering releasing 18 months’ dearness allowance/relief of Central Government employees/pensioners, which was withheld during Covid outbreak?
(b) if so, the details thereof?
(c) if not, the reasons for not releasing it even though our economy is the third largest in the world; and
(d) the details of the representations received in this regard from the year 2024 till date, representation-wise and the action taken thereon?
Answer
Minister of State for Finance (Shri Pankaj Choudhary)
(a) No sir.
(b) The question does not arise.
(c) & (d) In view of the economic disruption caused by COVID-19, it was decided to freeze three instalments of Dearness Allowance (DA)/Dearness Relief (DR) payable to Central Government employees, pensioners from 01.01.2020, 01.07.2020 and 01.01.2021, in order to ease pressure on Government finances. During the year 2024, several representations were received from Government employees’ associations including the National Council of Joint Consultative Mechanism (NCJCM). As there was fiscal deficit in 2020 even after the financial year 2020-21 due to the financial impact of the global pandemic and on financing the welfare measures taken by the Government, freezing of arrears of Dearness Allowance/Dearness Relief was not considered feasible.
Dearness allowance will increase by 3% from July
Central employees may have been disappointed on the front of 18 months' DA arrears, but 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 the dearness allowance will increase are out. This time the dearness allowance will increase by 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 some time to be announced. It may be announced in late September or October.
