The eagerly anticipated decision regarding the Dearness Allowance (DA) arrears pending for central government employees and pensioners is still under hot debate. The momentum is strong for a swift conclusion from the government regarding the dues with respect to payment or otherwise, and employees are showing great hope in that direction. This is the latest on this highly significant matter.
Background On The DA Arrears Issue
During the COVID-19 pandemic, the central government decided to freeze DA increases of those employed in government service and pensioners from January 2020 to June 2021. Thus a hefty amount of DA built up over a period of 18 months which affected millions of government workers. From that point onward, employees and unions considered the possibility of releasing these dues on inflation trends and financial distress.
Government Justification For DA-Arrears Payment
Though the unions have raised this issue from time to time, the government has never confirmed its stand on the payment of these pending DA arrears. The reports claim that the government is weighing financial implications before arriving at any conclusion. Some reports mention that paying the arrears at once would not be feasible because of fiscal constraints, and the government may rather prefer a staggered method of just partial payment.
DA Basic And Possible Hike-The Current Situation
The DA for central government employees now stands at 46%, and an increase of 4% is very likely to be announced shortly, taking it to 50%. This revision will be effective from January 2025 and may further increase employee salary. Nevertheless, the question of settlement of the DA arrears due for 2020-21 is still very much alive and unresolved.
Union Demands And Employee Promises
Employee unions pressurized the government to pay for the 18-month arrears of the DA, claiming it as their right. The Finance Ministry has received several representations calling for one-time settlement or other arrangements concerning these DA arrears. Many employees are hopeful that the government will consider their demand before the closure of the financial year 2024-25.
Conclusion
Thus far, no official announcement on the DA arrears pending has ever been made by the government. Employees await announcements which impact their fiscal planning in a larger way. Since 2025 would bring an increase of DA, some payout of the pending dues would come as partial relief to central employees, but the matter remains undecided. Keep watching for further updates as the issue develops in discussions at the government level.
Also Read: DA Hike Announcement: Latest Update On Expected Date And Increase