DA Arrears: Major news for central government employees. With the establishment of the 8th Pay Commission, central employees are eagerly anticipating its recommendations. These recommendations are expected to be implemented within the next year and a half. Meanwhile, various organizations representing central employees are voicing multiple demands. One significant demand is regarding the long-overdue 18-month dearness allowance (DA) arrears.
What’s the situation?
The issue stems from the COVID-19 pandemic, during which the government suspended any increase in dearness allowance (DA) from January 2020 to June 2021. Due to economic pressures, the government withheld three installments of DA and DR payments for employees and pensioners. As a result, the arrears for these 18 months are still outstanding. Employee organizations are persistently urging the government to settle this pending amount.
What is the government’s position?
The Central Government has repeatedly asserted in the House that it does not plan to pay the 18 months’ arrears of DA. A question was raised in the House regarding whether the decision to freeze the 18 months’ dearness allowance and dearness relief for central government employees and pensioners during the COVID-19 pandemic was made to alleviate economic disruption and pressure on government finances.
In reply, the Ministry of Finance stated, “The decision to withhold three installments of Dearness Allowance (DA)/Dearness Relief (DR) due to Central Government employees/pensioners from January 1, 2020, July 1, 2020, and January 1, 2021, was made in light of the economic disruption caused by COVID-19, to ease the strain on government finances.
The negative financial effects of the pandemic in 2020 and the financial burden of supporting the welfare measures implemented by the government extended beyond the financial year 2020-21. Thus, it was deemed unfeasible to release the arrears of Dearness Allowance.
What is the argument of the workers’ unions?
Employee unions argue that this amount is employees’ right and that withholding it is not appropriate. Several organizations have demanded that the government pay 18 months’ DA arrears at the same time as the 8th Pay Commission is implemented. They say this will provide financial relief to employees and increase trust in the government. Currently, approximately 4.8 million central government employees and approximately 6.5 million pensioners are awaiting this decision. If all goes well, the Pay Commission’s recommendations will be implemented in the first half of 2027.