It has been a long wait, but the long-awaited event has finally taken place as government notification regarding the payment schedule and amount details of the long-awaited Dearness Allowance (DA) arrears has come out. This announcement comes as a huge relief to millions of central government employees and pensioners who have been anxiously waiting for a clear picture of the pending dues.
As per the recent updates, the payment of DA arrears will be made along with the salary due for the month following the announcement, which means that the beneficiaries will be given the new enhanced rate of DA along with the compensation for the past months as a one-time settlement. Payments are likely by May 31, 2025, for the benefit of employees and pensioners to work out their finances.
What Amount Of Arrears Can Be Expected?
There was a grant of a 12% increase in DA with effect from January 2025. Due to delays in administrative clearance and approval, the payments of this revised amount could not be processed immediately. Therefore, employees would be entitled to DA for four months, that is January, February, March, and April 2025-in respect of four additional payments.
For a central government employee with a basic pay of ₹40,000, the DA increase is around ₹4,800 per month(12% of ₹40,000). This means roughly DA arrears of ₹19,200 for four months. Pensioners would also benefit exactly similar increments based on the applicable basic pension amount payable to them.
Eligible Recipients
- All central Government employees still in service
- Pensioners of the Central Government
- Family pensioners
Employees and pensioners of autonomous bodies that follow the Central Pay Commission in their pay structure will also be covered for the payment.
Important Note
Payments will be made separately and not linked to salary or pension. It is advisable for beneficiaries to independently verify their bank details and update their service records to ensure that payments do not get hindered.
Effect On Future Salaries
Starting in January 2025, an increase would be assured every month considering that State employees and pensioners would automatically benefit from this. It is yet another step taken by the Government to at least try to make up for the erosion of real incomes of employees by inflation.
Conclusion
The announcement of the DA arrears payment is indeed a huge source of income for millions of households. Now, with the confirmation of the date and payment details from the government, employees and pensioners await the release of their long-withheld dues by May 2025.
More updates will follow as the government releases the instructions to track these payments!
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