Pensioners and central government workers in India are eagerly awaiting the Indian government’s decision about the payment of their due arrears for Dearness Relief (DR) and Dearness Allowance (DA).
These arrears, hold for 18 months during the COVID-19 pandemic, indicate a significant financial amount that could go up to ₹2 lakh for some employees. Over 1 crore workers and pensioners who have been waiting years for this decision would receive essential financial stability if the initiative is approved.
18 Months DA Arrears
The government decided to hold DA and DR arrears from January 2020 to June 2021 due to the financial burden caused by the COVID-19 pandemic. According to the Minister of State for Finance, Pankaj Chaudhary, the economic challenges during COVID time forced the government to stop these payments.
However, many employees and pensioners who depended on this change to handle growing expenses experienced financial problems as an outcome of this decision. Employee unions have recently requested the government to release the 18 month hold payment.
What is Dearness Allowance (DA)?
- A crucial component of the pay given to government workers and pensioners to help them deal with inflation is the Dearness Allowance.
- The DA has been updated twice a year, typically in January and July, based on the cost of living and inflation rates.
- It is an important part of an employee’s wages because it is determined as a percentage of the base pay.
- For pensioners, the Dearness Relief (DR) have also the same purpose to maintain standard of living of employees in rising cost of living.
What Benefits Can Employees and Pensioners Expect?
If the government approves the payment of the 18-month arrears, the financial benefits could be significant, varying according to pay levels. Arrears for Level-1 employees may vary between ₹11,880 and ₹37,554.
Higher-level employees, such as those in Level-13, could receive between ₹1,23,100 and ₹2,15,900, while those in Level-14 could expect up to ₹2,18,200. In addition to helping families who are struggling with rising costs, 18 month arrear payment would raise moral of workers and retirees who have been waiting for justice.
Why is This Decision Crucial?
In addition to providing compensation, the 18-month DA and DR arrears are being released to honour the sacrifices and contributions made by central employees and pensioners during COVID 19 pandemic.
This overdue payment could provide vital support to many families who experienced extreme financial challenges during the pandemic. Moreover, paying the 18 month DA and DR arrears will ensure that workers feel acknowledged re-establishing trust between the government and its employees.
What is the Current Status of 18 month Arrears?
- Although the demand for releasing 18 month arrears payment is increasing, the government has not yet made any official announcement.
- Under the leadership of officials like Shiv Gopal Mishra, employee unions are still interacting with the administration to find a solution.
- While the government maintains that the hold was necessary during the pandemic, employees claim the arrears are a proper entitlement that cannot be ignored.
- Employees and retirees keep hoping that the government would soon make a good decision as the Indian economy recovers.
FAQs
Why were the DA and DR arrears held for 18 months?
The 18 Months DA Arrears were held due to the financial burden caused by the COVID-19 pandemic.
How much arrears can Level-1 employees expect if approved?
If approved, Level-1 employees may receive arrears ranging from ₹11880 to ₹37554.
What is the current status of the 18-month DA arrears?
The government has not announced a decision yet, but employee unions continue to request for 18 Months DA Arrears release.