Are you eagerly awaiting the release of 18 months’ worth of DA arrears for Central Government employees and pensioners that were stopped during the Covid-19 epidemic?
Currently, there isn’t a plan by the Central Government to distribute the Dearness Allowance (DA) arrears spanning 18 months to central government employees and retired individuals who receive pensions.
Look no further than the latest update from Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary. The decision to freeze three instalments of Dearness Allowance (DA)/Dearness Relief (DR) was made in response to the economic disruption caused by the pandemic. The Government’s fiscal deficit is currently at more than double the level anticipated in the FRBM Act due to Covid-19’s financial impact in 2020 and the funding of Government welfare measures. As a result, releasing the arrears of DA/DR, which mainly pertain to the challenging period of FY 2020-21, is not currently feasible. However, the Government saved and utilized an impressive amount of 34,402.32 crores by freezing three installments of Dearness Allowance and Dearness Relief to mitigate the pandemic’s economic impact on Central Government employees and pensioners.
In Parliament today, Shri Pankaj Chaudhary, the Minister of State for Finance, addressed the matter of 18 months of DA arrears that are owed from January 1st, 2020 to June 30th, 2021.
Government of India
Ministry of Finance
Department of Expenditure
Unstarred Question No. 1971.
To be answered on Tuesday, 13th March, 2023
Phalguna 22, 1944 (Saka)
Release of DA Arrears to Central Government Employees and Pensioners
1971:: SHRI C. LALROSANGA:
Will the Minister of Finance be pleased to state:
(a) whether the Government has any plan to release the 18 months DA Arrears stopped during Covid-19 Epidemic to Central Government Employees and Pensioners in the near future and if so, the details thereof and the time by when the Government is likely to release the arrears;
(b) the reasons for the delay in the release of said DA arrears; and
(c) the total amount of funds required for the disbursement of the DA Arrears to Central Government Employees and Pensioners?
Minister of State in the Ministry of Finance
(Shri Pankaj Chaudhary)
(a)&(b): No, Sir, The decision to freeze three instalments of Dearness Allowance(DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances. As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spill over beyond FY 2020-21, arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible. Even now the fiscal deficit of the Government is running at more than double the level envisaged in the FRBM Acct.
(c): Does not arise. However, an amount of Rs.34402.32 crores had been saved and utilized to tide over the economic impact of COVID-19 pandemic on account of freezing of three installments of Dearness Allowance and Dearness Relief payable to Central Government employees and pensioners.
Inputs from Lok Sabha Unstarred Question No. 1971
Great News for Government Employees and Pensioners: Salary and Pension Hike Expected from Jan 2023
The Cabinet Committee is expected to approve an increase in the Dearness Allowance for Central Government employees today. This decision will bring a 4% hike in accordance with the 7th Pay Commission DA formula. As a result, the current 38% will increase to 42% from January 2023. This salary and pension hike will have a positive impact on employees, pensioners, and family pensioners. Not only that, but they can also expect to receive arrears for Jan and Feb 2023 alongside their upcoming salary or pension earnings.
Is it feasible for Central Government employees and pensioners to receive their 18-month frozen DA and DR arrears?
The Minister of State for Finance has responded in Parliament today stating that it is not possible.
Government issue any order regarding DA arrears?
The Central Government has made an important announcement in Parliament regarding the release of DA arrears. According to the latest update, the government has clarified that it is not feasible to issue DA arrears for a period of 18 months to the beneficiaries. This decision was taken due to the temporary suspension of DA for Central government employees and pensioners for the same duration, owing to the Covid pandemic. Stay updated on the latest news and announcements related to government orders regarding DA arrears.