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’ arrears of dearness allowance which was 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 its stand in this matter. However, earlier many times the Finance Ministry had clearly refused to answer this question. Still, the Minister of State for Finance has given a written answer to the question asked during the monsoon session.
Hopes of 18 Months DA Arrears 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.
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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 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 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 from 01.01.2020, 01.07.2020 and 01.01.2021 was taken in the context of economic disruption caused by COVID-19, in order to ease pressure on government finances. Several representations were received from Government employees’ associations including the National Council of Joint Consultative Mechanism (NCJCM) during the year 2024. Since there was fiscal deficit even after the financial year 2020-21 on countering the financial impact of the global pandemic in 2020 and financing the welfare measures undertaken by the Government, deferring arrears of Dearness Allowance/Dearness Relief was not considered feasible.
DA hike will be 3% from July
Even though the central employees have been disappointed on the front of 18 months’ DA arrears, 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 have come. This time the dearness allowance will increase 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.
