Introduction to DA and DR Arrears
Central government employees and pensioners have been waiting for the release of Dearness Allowance (DA) and Dearness Relief (DR) arrears withheld during the COVID-19 pandemic ahead of the 8th Pay Commission. The arrears, which remained unpaid for 18 months during the pandemic period, have been a long-standing demand among millions of beneficiaries.
Background of the Issue
The Finance Ministry clarified in 2020 that these pending payments couldn’t be released at this stage. According to the ministry, there was no possibility of disbursing the withheld DA and DR arrears, despite continued requests from employees and pensioners for their settlement. The notification stated that the additional instalment of Dearness Allowance payable to Central Government employees and Dearness Relief to Central Government pensioners, due from 1st January 2020 shall not be paid.
The additional instalments of Dearness Allowance and Dearness Relief due from 1st July 2020 and 1st January 2021 shall also not be paid. For more information on Dearness Allowance and Dearness Relief, please visit our website.
8th Pay Commission and DA, DR Arrears
The 8th Central Pay Commission has received a large number of requests from unions and associations for meetings in Delhi scheduled from 28 April to 30 April. Due to the compressed schedule and the high volume of requests, the Commission said it will not be possible to accommodate all of them during these dates, as per reports.
At the recent 8th Pay Commission meeting in Dehradun, one of the demands by central employees and their affiliated organisations was the payment of 18 months’ DA arrears. The Commission said it plans to hold further meetings in Delhi and other States and Union Territories in the coming months.
Recent Developments: 2% DA Hike
The government on 18 April approved a 2% increase in DA for central government employees and DR for pensioners, providing relief to nearly 50.46 lakh employees and 68.27 lakh pensioners. Information and Broadcasting Minister Ashwini Vaishnaw said the decision was taken during the Cabinet meeting chaired by Prime Minister Narendra Modi.
The revised rates came into effect from 1 January, raising the existing DA and DR from 58% to 60% of Basic Pay and Pension. The move is intended to help employees and pensioners cope with rising prices. To know more about the Indian economy and its impact on central government employees, please visit our website.
Conclusion
In conclusion, the central government employees and pensioners await the release of DA and DR arrears withheld during the COVID-19 pandemic. The 8th Pay Commission is expected to address the long-standing demand for the payment of these arrears. The recent 2% DA hike is a relief to the employees and pensioners, but the payment of arrears remains a major concern.