FM gets proposal to release 18-month DA arrear

New Delhi, January 27, 2024 — In a recent development, there is growing anticipation among central government employees and pensioners as they await clarity on whether the arrears for the suspended dearness allowance (DA) and dearness relief (DR) during the 18 months of the COVID-19 pandemic will be disbursed. Mukesh Singh, General Secretary of Bharatiya Pratiksha Mazdoor Sangh, has penned a letter to Finance Minister Nirmala Sitharaman, urging the government to release the DA arrears for the 18-month period that was previously put on hold.

Amid the unprecedented challenges posed by the COVID-19 pandemic, the Central Government had decided to halt the payment of DA and DR for 18 months, spanning from January 2020 to June 2021. Responding to a query in Lok Sabha, Pankaj Chaudhary, Minister of State in the Ministry of Finance, had previously stated that releasing arrears for the said period was not deemed feasible due to the adverse financial impact of the pandemic in 2020 and the fiscal ramifications of welfare measures extending beyond the financial year 2020-21.

However, Singh, in his letter, acknowledged the difficulties brought about by the pandemic but emphasized the improving financial situation of the country. He expressed gratitude for the contributions made by government employees and retired personnel during the challenging times of the pandemic, highlighting their dedication and hard work in maintaining essential services and supporting the nation's fight against COVID-19.

Singh urged the Finance Minister to reconsider the decision on the release of the withheld three instalments of Dearness Allowance during the upcoming budget session. He pointed out that, given the current financial scenario and the pivotal role played by government employees, releasing the accumulated amount would be a fitting acknowledgment of their efforts and provide much-needed relief to those who served the nation diligently.

Explaining the importance of dearness allowance, Singh clarified that it is a component of the salary of government employees and pensioners aimed at mitigating the impact of inflation. The Union government revises DA twice every year – in January and July – to cope with rising inflation. The latest figures indicate that DA for Central Government employees and DR for Central Government pensioners have been increased from 42% to 46%, effective from July 1, 2023. This revision is set to benefit approximately 48.67 lakh central government employees and 67.95 lakh central government pensioners. As the anticipation builds, the government's decision on releasing the DA arrears remains a topic of keen interest for the concerned beneficiaries.