Recently, the central government has come up with a major announcement on Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. The government stopped payments from January 2020 till June 2021 because of payments posed by the COVID 19 pandemic. Nevertheless, now there is a hope that the long-pending arrears will be cleared soon, including via the forthcoming Budget of 2025.
Key Highlights
- The central government withheld payment of DA and DR to its employees as well as pensioners from January 2020 till June 2021 when the COVID 19 pandemic prevailed.
- Now, Modi government is expected to approve the payment of these DA and DR suspended arrears in the Budget 2025. The benefit of this is expected to offer a significant relief to the millions of employees and pensioners.
- The Joint Consultative Machinery (JCM) representing central government employees has been pressing the government to clear outstanding 18 month pending Dearness Allowance.
- However, they added that despite economic reforms, arrears were accrued because of financial problems during the pandemic. The payment is seen as crucial as the country recovers to help reduce the financial stress experienced by employees and pensioners.
Expectations from Budget 2025
The clearance of the DA arrears, as inflation continues to be a concern, will come as a much needed relief for central government employees and pensioners. The next Budget 2025, which is due to be presented on February 1, 2025 is likely to address this issue, making it the first full Budget of the Modi government’s third term.
If Finance Ministry’s proposed DA and DR arrears payment meets this long pending demand, it would go a long way for better financial state of several government employees and pensioners.
Outlook:
This proposal is serious business and the central government is taking it very seriously. If approved it will be a positive step towards giving millions of employees and pensioners the relief they need.
However, the announcement is eagerly awaited as it is understood to toughen economic stability post pandemic. The implementation of this measure would give huge support to the financial conditions of too many employees, bringing about their well-being.
