Big news for government employees. In January, the central government gave the green light for the eighth pay commission, which has raised hopes among central employees about receiving the 18 months’ worth of dearness allowance (DA) arrears. In the meantime, the government has provided another update in the House regarding this allowance.
So, what’s the government’s stance?
The central government has decided not to pay out the 18 months’ worth of Dearness Allowance (DA) and Dearness Relief (DR) that were put on hold during the COVID-19 pandemic. The Union Finance Ministry confirmed this in written responses to questions in both Houses of Parliament. When asked about it in the Lok Sabha, Minister of State in the Finance Ministry Pankaj Chaudhary explained that three installments of DA and DR were paused during the pandemic to ease the financial strain on the government.
He clarified that there are no plans to release these DA arrears. The minister elaborated that the financial burden increased in 2020 due to the pandemic’s negative impact and the costs associated with the government’s welfare initiatives. This information was provided in response to a question from SP MP Anand Bhadauria.
Currently, the DA stands at 53%. The current rate of Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners is set at 53%, following the 7th Pay Commission’s recommendations. The central government has just given the green light for the 8th Pay Commission, which is likely to kick in next year. There’s a chance for the DA to be raised twice before that happens.