In a major development that finally brings some relief to central government employees and pensioners after a long time, the government had done a great deal for them-the approved release of 18-month Dearness Allowance (DA) arrears. The long-pending demand is set to give a handsome fillip to income earning monthly from this month onwards after discussions and appeals of employee unions across the country.
This is because the DA was frozen between January 2020 and June 2021. From now on, it will be released in phases. It benefits more than 50 lakh central government employees and about 65 lakh pensioners. Thus, it can be termed one of the biggest and impactful financial relief measures so far in this decade.
How Much Will You Get?
The amount of DA arrears will depend not just on the pay level of the employee but also on the grade pay and the amount of basic salary he draws. For instance, a worker drawing a basic pay of ₹18,000 could get between ₹11,000 and ₹15,000 as arrears. Higher level officers and pensioners may have an arrear payment above ₹40,000 or more. The calculation will vary according to the percentage of DA applicable during each of the 18 months.
The finance ministry has directed ministries to calculate and start disbursement immediately. Most of the employees will be expecting the amount to be credited along with the salary/pension disbursement for the current month.
A Long-Waited Victory
For years, there has been a strong demand by unions like the National Council of JCM (Joint Consultative Machinery) for the release of held DA arrears, citing that the freeze affected lower and mid-lower levels disproportionately. Such consideration has been dubbed as a huge victory and progress for employee unions toward restoring financial equity and trust, and to this date holds true.
What Next?
Departments will notify individual employees filling out details about the installments and timing of payment. Some may be paid in one lump sum and others in 2-3 installments, depending on individual department policy.
Conclusion
The release of 18 months of DA dues is a big financial boost and morale booster for government employees and pensioners. Given that the sky-high inflation pressure is still prevailing, it will relieve household expenses and provide long-awaited breathing space financially for millions across the length and breadth of the country. Watch that payslip or pension statement this month for added figures!!!!
Also Read: Fitment Factor & Minimum Wage In Focus: NC-JCM To Draft Common Memorandum