7th Pay Commission: 18-Month DA, DR Arrears for Central Govt Employees Soon? Know What Government Said
In response to inquiries from members of Parliament about whether the government is ‘actively considering’ releasing the arrears for central government employees and pensioners on 7th pay commission recommendations, Pankaj Chaudhary, Union Minister of State for Finance, stated unequivocally, ‘No’.
New Delhi, August 10: The Union government has confirmed that it will not release the arrears for Dearness Allowance (DA) and Dearness Relief (DR) that were suspended for 18 months during the COVID-19 pandemic. In response to inquiries from members of Parliament about whether the government is "actively considering" releasing the arrears for central government employees and pensioners on 7th pay commission recommendations, Pankaj Chaudhary, Union Minister of State for Finance, stated unequivocally, "No."
The DA and DR installments, due from January 1, 2020, July 1, 2020, and January 1, 2021, were frozen as part of the government's efforts to manage the economic impact of the pandemic. Chaudhary explained that the decision was made to ease pressure on government finances during a period of severe economic disruption. The fiscal impact of the pandemic extended beyond the 2020-21 financial year, and as a result, the release of arrears was deemed unfeasible. 7th Pay Commission: Dearness Allowance Hike for Central Govt Employees Likely Soon, Know by How Much DA is Expected to Rise.
Despite the government's stance, various employee unions and associations have continued to press for the release of the withheld arrears on basis of 7th pay commission. Chaudhary acknowledged that the government has received multiple representations on this issue in 2024, including from the National Council of Joint Consultative Machinery (NCJCM) and Bharatiya Pratiksha Mazdoor Sangh. 7th Pay Commission Latest Update: Will DA Merge With Basic Salary After Reaching 50%? Know Calculation for Central Government Employees.
During the pandemic, the freezing of DA and DR installments resulted in savings of Rs 34,402.32 crore, which were redirected to address the economic challenges posed by COVID-19. Unions have argued that releasing the arrears would provide relief to government employees and retirees who have served the nation diligently.
Dearness Allowance, a critical component of government employees' salaries, is adjusted periodically to offset the effects of inflation. As of January 1, 2024, the DA for central government employees was increased to 50%, triggering a corresponding rise in several allowances, including the House Rent Allowance (HRA).
(The above story first appeared on LatestLY on Aug 10, 2024 07:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).