Dearness Allowance is an important component of pay package of most of the central government employees and pensioners and they have been waiting for last 18 months for its settlement.
The problem which has attracted the leadership of the opposition, members of parliament and various lobby groups now appears to be headed towards a solution. Before that, let me describe what has occurred till now and the position of the government.
Background and Government Actions
Due to COVID-19, the central government froze the DA & DR Installment for January, 2020, July, 2020 & January, 2021. As much as the government defended this move through the arguments about saving ₹34,402, it was widely regarded otherwise of 32 crore which was supposed to cater to the deficit that COVID pandemic created in the economy. Nevertheless, such decision brought dissatisfaction among employees and pensioners.
Recent Developments and Government Response
Members of Parliament in the recent past have been rousing concerns about delayed payments of DA. They noted that since India is the third largest economy in the whole world, there was no good reason as to why the arrears were being held back. This has however escalated the call for action demanding the government to act on it.
Furthermore, Samajwadi Party leader and the former Chief Minister of Uttar Pradesh Akhilesh Yadav has also opposed the government’s stand. On the two issues he said it was wrong for employers not to have paid DA arrears to its employees and pensioners as it should be addressed immediately.
In response, Pankaj Chaudhary, the Union Minister of State for Finance said that the decision to stop the DA installments was made keeping in mind the financial impact of the pandemic. He said there has been a lot of demands for the arrears from the employee unions in 2024, but at the moment the government struggles to pay the arrears due to current situation.
The present state of affairs and the future trends
The issue of DA arrears has remained topical in parliament with calls on the government to address the matter intensifying. As much as the government has implemented these demands and addressed the concerns, it has not given the current time of when it will pay the arrears.
We have to wait and watch as the talks are on, whether the Government will bow to the pressure and come out with a favourable decision for employees and pensioners.
