According to reports, the central government is to infuse the long-overdue arrears of 18 months Dearness Allowance to its employees and pensioners. It would mean release for millions of employees and retirees who are eagerly awaiting this adjustment in their finances. The DA arrears piled up during the pandemic, but soon, the much-needed financial balance to many households is being restored through its release.
Background of the Delay
This delay in the DA payment began with the declaration of the government in January 2020, declaring a freeze on DA and Dearness Relief due to its fiscal squeeze caused by the COVID-19 pandemic. Freezing DA and DR on both active employees and pensioners is seen as an interim arrangement to cushion the economic impact of the crisis. As the pandemic continued into fiscal challenges, the arrears build-up began.
Who Will Benefit?
The decision will benefit millions of central government employees and pensioners in the country once the pending DA arrears are released. DA is an important component in the salary structure, which assists the government to counter inflation and upward cost of living measures. Pensioners are one of the most important beneficiaries of these payments to sustain their livelihoods after retirement.
What to Expect Next?
Discussions and proposals are reportedly underway, with many expecting an official pronouncement any day now. This is likely to boost the buying capacity of the beneficiaries-the impact on the larger economy will then be positive.
Employees and pensioners have been advised to watch out for government announcements as the situation develops. It would mark a major step toward meeting pending commitments when such a long-awaited decision finally arrives.
