18 month da arrears: In response to a query, 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 month DA arrears.
18 month da arrears: A big update has come out for the 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 the 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 many times the Finance Ministry had clearly denied in response to this question. Still, the Minister of State for Finance has given a written answer to the question asked during the monsoon session.
18 Months DA Arrears’ hopes dashed again
In response to the query, the Finance Ministry has categorically ruled out the possibility of distribution of Dearness Allowance (DA) and Dearness Relief (DR) arrears, dashing any hopes of disbursement of 18 months’ DA arrears. The question was raised by Rajya Sabha MPs Javed Ali Khan and Ramji Lal Suman.
Question
(a) Is the Government actively considering releasing 18 months’ Dearness Allowance/Relief of Central Government employees/Pensioners which was withheld during the Covid outbreak?
(b) If yes, the details thereof?
(c) If not, 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 2024 till date and action taken thereon, representation-wise?
Answer
MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHOUDHARY)
(a) No Sir.
(b) The question does not arise.
(c) & (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 the associations of government employees 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, but soon their dearness allowance is going to increase. 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 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 some time for it to be announced. It can be announced in late September or October.
