Dearness Allowance – DA and Dearness Relief – Dr is an important financial assistance for central government employees and pensioners. The DA/DR increase was freed from January 2020 to June 2021 during the Kovid-19 epidemic, which did not give the employees 18 months arrears. Now discussions about this arrear are intensifying, and employees want to know how much arrear they will get and how to calculate it.
In this article we will give complete information about DA/DR Arrear, in which its calculation method, potential amount, and other aspects related to it will discuss.
DA/Dr Arrear Introduction
DA and DR are given to government employees and pensioners to provide relief from inflation. It is revised every six months as a certain percentage of basic salary or pension.
The 18 -month DA/Dr Arrear dues from January 2020 to June 2021, when the government stopped the increase of DA/Dr. During this time there was to increase three times:
- January 2020
- July 2020
- January 2021
But these hikes were not implemented, so that employees and pensioners did not get this outstanding amount.
DA/Dr Arrear overview
| Description | Acquaintance |
| Arrear duration | January 2020 to June 2021 (18 months) |
| Beneficiary | Central government employees and pensioners |
| Freezed DA/DR hike | 3 times (January 2020, July 2020, January 2021) |
| Current da rate | 50% (from July 2024) |
| Potential arrear amount | From ₹ 11,880 to ₹ 2,15,900 |
| Number of beneficiaries | About 1 crore |
| Estimated expenditure | Around ₹ 34,000 crore |
DA/Dr Arrear Calculation Method
Calculating DA/Dr Arrear can be a bit complex, but the following stages can be followed to make it easier:
1. Basic pay fixation
The basic pay of the employee is first determined. This is the amount on which DA is applied.
2. DA growth rates detection
DA growth rates for January 2020, July 2020 and January 2021 are detected:
- January 2020: 4%
- July 2020: 3%
- January 2021: 4%
3. Calculation of DA for each period
Different DA is calculated for a period of six months.
4. Calculation of Total Da Arrear
A total DA arrears are extracted by adding DA of the three periods.
5. Tax deduction
Finally, the tax is deducted according to the applied tax rules.
Example of DA Arrear Calculation
Suppose the basic salary of an employee is ₹ 50,000.
Growth Rates:
- January 2020: 4%
- July 2020: 3%
- January 2021: 4%
Calculation:
- January-June 2020 (6 months):
- ₹ 50,000 × 4100 × 6 =. 12,000
- ₹ 50,000 ×
- 100
- 4
- × 6 = (12,000
- July-December 2020 (6 months):
- ₹ 50,000 × (4+3) 100 × 6 =. 21,000
- ₹ 50,000 ×
- 100
- (4+3)
- × 6 = (21,000
- January-June 2021 (6 months):
- ₹ 50,000 × (4+3+4) 100 × 6 =. 33,000
- ₹ 50,000 ×
- 100
- (4+3+4)
- × 6 = ₹ 33,000
Total arrears:
₹ 12,000+₹ 21,000 ₹ 33,000 = ₹ 66,000
₹ 12,000+₹ 21,000 ₹ 33,000 = ₹ 66,000
Estimated arrear amount at various pay levels
Below is given the estimated arrear amount at various pay levels:
| Pay level (₹) | Estimated arrear amount (₹) |
| Level-1 (₹ 18,000) | ₹ 11,880 to ₹ 37,554 |
| Level-5 (₹ 35,400) | ₹ 37,730 to ₹ 65,980 |
| Level-10 (₹ 56,100) | ₹ 78,800 to ₹ 1,37,900 |
| Level-13 (₹ 1,23,100) | ₹ 1,23,100 to ₹ 2,15,900 |
DA Arrears Payment Process
The government has decided that DA/DR arrears will be paid in installments. The approximate schedule can be as follows:
- First installment: January 2025
- Second installment: February 2025
- Third installment: March 2025
- Fourth installment: April 2025
Other aspects related to DA Arrears
Changes in DA rates in future
Currently, the central government has increased the DA rate to 50% from July 2024. It is likely to increase further:
- Estimated Rate in January 2025: 56%
Economic impact
This amount will increase the purchasing power of the employees and encourage demand in the market. It will also have a big impact on the government treasury.
conclusion
The 18 -month DA/Dr Arrear can prove to be a major relief for central government employees and pensioners. However, its payment has not been decided yet. If the government approves it, it will help in improving the financial situation of millions.
Disclaimer
This article is written only for the purpose of giving information. The government has not yet officially agreed to this payment. Please rely on official announcements and expert advice before taking any financial decision.
