Dearness Allowance Hike: Central Govt. Employees and Pensioners will get 18 Months of DA Arrears?

Whether central government employees and pensioners would be provided arrears for the dearness allowance (DA) and dearness relief (DR), which were withheld for 18 months due to the COVID-19 impact? Writings newly submitted in a letter to the Honorable Prime Minister of India, Shri Narendra Modi, the Secretary, National Council (Staff side), and JCM for Central Government employees and workers, Shiva Gopal Mishra, demanded the DA arrears of 18 months deferred by the central government.

Due to the COVID-19 pandemic situation, the Central Government stopped the payment of DA and DR, and it was frozen from January 2020 to June 2021. Earlier, the General Secretary of Bharatiya Pratiksha Mazdoor Sangh, Mukesh Singh called on the central government to release the suspended dearness allowance arrears for the past 18 months. In the letter to Finance Minister Nirmala Sitharaman, Singh said, “I clearly comprehend the problems we are facing due to the COVID-19 outbreak and related economic slowdown that forced the government to put on hold three installments of Dearness Allowance and Dearness Relief for FY 2020-21. But the situation in our country is improving gradually, and it is heartening to see the much-improved financial position.”

While expressing his ideas, Mishra wrote in a letter to the Prime Minister, “As a secretary (staff side) of the National Council (JCM), it is my duty to draw your kind attention to some of the major issues that are agitating the minds of the central government employees and pensioners.”.

Earlier, in a written response to a question raised in the Lok Sabha, Pankaj Chaudhary, Minister of State in the Ministry of Finance, said that “arrears of DA/DR, which mostly pertain to the difficult FY 2020–21, are not considered feasible due to the adverse impact of the pandemic in 2020; the funding of welfare measures undertaken by the government has a finacial carry-over impact beyond the year.”

What does the term dearness allowance imply?

Dearness allowance is another component of salary connected with government employees and pensioners. It was brought in to help government employees face the inflationary trend that was emerging. This allowance helps act as a hedge against inflation, similar to a pay rise whereby government staff and pensioners get better take-home pay. Hopefully, the DA is reassessed twice a year, during the January month and the middle of July, by the Union government. However, it is vital to be aware that the amount may differ from the gross salary afforded to the employee depending on the company’s place of business.

DA hiked to 50%; there was no other order to be released with the effect of mentioning an increase in HRA or other allowances

The cost of living allowance for central government employees escalated to 50% on January 1, 2024. HRA also gets revised when DA reaches 50%, and this is why the staff slammed the department for delaying its release. The DoP&T has issued a list of allowances that are set to be adjusted as a consequence of the increased DA. But there has been no order so far with regard to the alteration of some allowances, including HRA.

Finally, putting to rest the confusion among lakhs of Central Government employees, the Ministry of Communications Department of Telecommunications has issued an Office Memorandum stating – The undersigned is directed to draw attention towards Department of Expenditure ID No. 2/5/2017-E.II (B) dated 20-03- 2024, addressed to the Controller General of Accounts, New Delhi, with a copy to this Department and others, in which the DoE has reiterated its position with regard to increasing the DA rates by 50%.