New Delhi, September 20: The central government is expected to announce a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) in October 2024, bringing the total DA to 53% on 7th pay commission recommendations. The move, expected just ahead of the Haryana assembly elections, will benefit both central government employees and pensioners. However, the government is unlikely to release the 18-month arrears of DA and DR that were withheld during the COVID-19 pandemic.

During the recent monsoon session of Parliament, queries were raised regarding the pending arrears. In response, Minister of State for Finance Pankaj Chaudhary confirmed that the government has no plans to release the withheld amounts. He explained that the decision to freeze three installments of DA and DR, due from January 2020, July 2020, and January 2021, was made to mitigate the financial strain caused by the pandemic. The economic disruption from COVID-19, along with government spending on welfare measures, left no room to accommodate the arrears on 7th pay commission recommendation.  7th Pay Commission News Update: DA Hike on Cards for Central Govt Employees, Check Details.

The 3% DA hike, effective from July 1, 2024, will not lead to the merging of DA with basic pay, even as it crosses the 50% threshold. Instead, allowances such as House Rent Allowance (HRA) have already been adjusted to reflect the rise in DA. DA and DR are adjusted twice a year, in January and July. In the last revision in March 2024, the government had increased DA and DR by 4%, bringing it to 50% of basic pay. 7th Pay Commission: DA Likely to Be Hiked by 3% For Central Govt Employees and Pensioners, Know How Much Salary Will Increase.

Meanwhile, demands for the formation of the 8th Pay Commission have grown, with the Confederation of Central Government Employees and Workers calling for its immediate establishment and the restoration of the old pension scheme. However, Chaudhary clarified in a written statement in the Rajya Sabha that, while representations were made, there is no proposal under consideration for the 8th Pay Commission at this time.

If approved, the new pay commission could raise the minimum salary of central government employees to INR 34,560, compared to the current INR 18,000. However, there is no official confirmation on this yet.

(The above story first appeared on LatestLY on Sep 20, 2024 08:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).