The issue of the 18-month deferment in Dearness Allowance (DA) arrears payable to central government employees has generated much talk and awaitings. These arrears stand for the period January 2020 to June 2021, when DA increases were frozen due to recession spawned by the COVID-19 pandemic. This article discusses the most recent updates concerning these arrears, its government’s stand, and reactions from different quarters.
Background: The DA Freeze During the Pandemic
In response to the economic disruption caused by the COVID-19 pandemic, the Government of India decided to freeze three installments of the Dearness Allowance (DA) and Dearness Relief (DR) that would have fallen due on January 1, 2020; July 1, 2020; and January 1, 2021. The Union government apparently sought to ease the burden on its finances during a time of unprecedented economic coordination.
Parliamentary Inquiries and Government’s Response
The questions of pending DA arrears for 18 months have been raised invariably in Parliament. On August 6, 2024, during the Monsoon Session, Members of Parliament asked if the government was considering making the payment of these arrears.
In a written reply, the Minister of State for Finance, Shri Pankaj Chaudhary, stated that the government was not considering making payment of these arrears. He mentioned that the adverse financial impact of the pandemic and the fiscal burden of welfare measures made it infeasible for the government to consider paying DA arrears.
Representations from Employee Associations
In 2024, various employee associations, including NCJCM, put in representations for the release of withheld DA and DR arrears. However, the government has stuck to its position citing financial crunches and the need to look after the economy at this given time.
Financial Implications of the DA Freeze
This freeze of DA and DR installments brought huge fiscal savings to the government. Reportedly, this saved around ₹34,402.32 crore, utilized to manage the economic impact of the pandemic and its associated welfare measures.
Status of DA for Central Government Employees at Present
The revision of the DA is still continuing, even when the arrears of 18 months have not been released. For instance, in July 2024, the DA was raised by 3%, putting the total DA at 53%. This amount has been adjusted by the government to meet ….Inflation increase based on the cost of living, without even mentioning paying up their dues.
Political Reactions
The issue caught the attention of political leaders as well. Akhilesh Yadav, the former Chief Minister of Uttar Pradesh and leader of the Samajwadi Party, criticized the central government for the DA arrears not being released, drawing attention to the plight of the employees and pensioners due to financial hardship.
Conclusion: Future Prospects
As it stands today, the government has categorically stated that there are absolutely no plans for the release of the 18-month DA arrears. Employee associations keep on voicing for the release, arguing that the economic situation supports it; however, the government continues to take the stand of not being able to pay for it because of the enormity of expenditure involved. Therefore central government employees and pensioners have to keep themselves updated from official sources about any future news regarding this subject.