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Chaudhary said that the central government has received several representations regarding the release of arrears of dearness allowance and dearness relief to central government employees and pensioners. “Several Representations regarding the release of arrears of 18 months of DA/DR payable to Central Government employees/pensioners have been received from various Central Government employees/pensioners’ associations such as National Council (JCM), National Federation of Indian Railway Men (NFIR), All India Railway Men’s Federation (AIRF), All India Retired Railway Men’s Federation (AIRRF), JCOs/OR Veterans Association (JAVA), Bhartiya Railway Karamchari Union (BRKU), Bhartiya Pension Manch, National Ex-Servicemen Coordination Committee and Veteran Association, etc,” he added
Also Read: 7th pay commission: Dearness allowance (DA) hiked by 4% for central govt employees, pensioners
In the wake of the Covid-19 pandemic, the central government had stalled the payment of DA and DR for 18 months from January 2020 to June 2021. In July 2021, the Centre hiked the dearness allowance and dearness relief for the central government employees to 28 per cent from 17 per cent after a long pause
‘DA, DR hike was not considered feasible’
Replying to a query on “whether the government is sincerely considering the release of 18 months’ arrears to pensioners”, the minister said, “The decision to freeze three instalments of DA/DR to Central Government employee/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 Financial Year 2020-21, release of arrears of DA/DR was not considered feasible.”
What is dearness allowance?
Dearness allowance is a component of salary of the government employees and pensioners, aimed at soothing the impact of inflation. To cope with the rising inflation, the effective salary of government employees is revised periodically. The Union government revises DA twice every year – in January and July. It must be noted that Dearness Allowance varies from employee to employee based on whether they work in the urban sector, semi-urban sector, or rural sector.To calculate the dearness allowance, the term ‘basic pay’ in the revised pay structure means the pay drawn at the prescribed level in the pay matrix as per the 7th pay commission recommendations accepted by the government, the Department of Expenditure said in an official memorandum dated October 3, 2022. The ‘basic pay’ does not include any other type of pay like special pay, etc.
Latest DA and DR for central government employees, pensioners
DA for central government employees and DR for central government pensioners have been increased from 34 per cent to 38 per cent of the basic pay. The revised rate will be applicable from July 1, 2022.
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