The central government has announced a hike in Dearness Allowance (DA) for employees and pensioners, bringing financial relief to many. However, while this increase is good news, many employees are disappointed as the 18-month DA arrears from the pandemic period remain unpaid. Additionally, employees are eager to know more about the 8th Pay Commission and its impact on their salaries.
No Payment of 18-Month DA Arrears
The government has made it clear that it will not pay the pending 18-month DA and DR (Dearness Relief) to central employees and pensioners. This confirmation came through written responses in both the Lok Sabha and Rajya Sabha.
Why Were DA Arrears Withheld?
During the COVID-19 pandemic, the government decided to freeze three installments of DA and DR from January 2020 to June 2021. This was done to manage financial burdens and allocate funds to important relief measures. Minister of State for Finance, Pankaj Chaudhary, stated that the government had to prioritize economic recovery, and hence, the arrears could not be paid.
This decision has disappointed many employees, especially because DA revisions were supposed to continue under the 7th Pay Commission. However, the government maintains that the freeze was necessary to stabilize the economy during the pandemic.
Latest DA Hike and Its Impact
Currently, under the 7th Pay Commission, central government employees and pensioners receive 53% DA. The latest decision increases it by 2%, raising it to 55%.
This hike is meant to adjust salaries according to inflation and provide better financial support to government employees and pensioners. While this increase offers some relief, many employees are still concerned about their unpaid arrears.
8th Pay Commission: What Employees Need to Know
A major development is the announcement of the 8th Pay Commission, approved by Prime Minister Narendra Modi on January 16, 2025. This commission is expected to revise salaries and allowances for nearly 50 lakh central employees and 65 lakh pensioners.
When Will the 8th Pay Commission Be Implemented?
The 7th Pay Commission was introduced in 2016 and will remain in effect until December 2025. Based on previous patterns, the 8th Pay Commission may be formed by January 2026, and the new pay structure and benefits will be implemented soon after.
Conclusion
While the increase in DA provides some relief, government employees remain concerned about unpaid DA arrears and look forward to the 8th Pay Commission for better salaries and benefits. The coming years will be crucial in determining how these decisions impact central government employees and pensioners.
Disclaimer: The information provided in this article is for general informational purposes only. While we strive for accuracy, we do not guarantee the completeness, reliability, or timeliness of the content. Readers are advised to verify details from official sources before making any decisions.