Central Govt Employees, Pensioners May Soon Get 18 Months’ DA Arrears

Sujeet Kushwaha

New Delhi: In a major relief, central government employees and pensioners may soon receive 18 months’ Dearness Allowance (DA) arrears that were halted during the Covid pandemic.

As per a recent letter written by the General Secretary of Bharatiya Mazdoor Sangh, Mukesh Singh to Union Finance Minister Nirmala Sitharaman, he urged that the three DA installments stopped during the pandemic be released in the upcoming budget 2023-24.

Singh highlighted the contributions made by government employees and pensioners during the challenging Covid times. He said their commitment ensured essential services functioned smoothly and supported the country’s fight against the virus. Considering their efforts, he requested the arrears be paid.

What Are DA Arrears?

The DA arrears pertain to three installments due in January 2020, July 2020 and January 2021 – totaling 18 months. They were halted due to the financial stress of Covid. Recently on Jan 25, detailed discussions happened on clearing these dues.

As per Minister Pankaj Choudhary’s earlier statement, paying arrears from 2020-21 seemed unlikely owing to the negative financial situation then. But the tables may turn now.

Apart from arrears, DA hike is also anticipated this January. Currently at 46%, it can be raised to 50% – a 4% increase in absolute terms. This will come as an added bonus for employees and pensioners.

Who All Will Benefit?

Payment of DA arrears will benefit nearly 50 lakh central government employees and 65 lakh pensioners covered under the 7th Pay Commission. Around 18 lakh armed forces pensioners will also get arrears.

The additional 4% DA, if cleared, will reflect in February 2023 salaries and March 2023 pensions. This will help beat inflationary pressures.

Overall, DA arrears and hikes put together can mean a significant jump in payouts. Employees have waited long enough and deserve timely clearance of their dues along with latest allowances.

The upcoming budget session will reveal if FM Sitharaman greenlights these much-awaited payouts that Mukesh Singh requested for. Central staffers remain hopeful the finance ministry will address their demands positively.

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Leveraging his government experience, Sujeet brings valuable insight on the stock market to ModernAgeBank.com readers. His passion for analysis drives coverage of equities and the latest financial news. When he's not busy dissecting stocks, Sujeet enjoys learning about new businesses and industries.
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