Dearness Allowance – DA is an important subject for central government employees and pensioners. Recently, there was a discussion about 54% DA and 18 -month DA arrear in the cabinet meeting, which caught the attention of millions of government employees and pensioners. However, the decision taken by the government on this issue can be disappointing for many people. In this article, we will discuss this subject in detail and know how this decision can affect employees and pensioners.
Government’s decision on dearness allowance (DA) and arrears
Dearness allowance (DA) Government employees and pensioners are given to make up for their salary or increasing inflation in pension. During the Korona epidemic, the government stopped the DA arrear of 18 months (January 2020 to June 2021). Now that the situation has become normal, the employees hoped that they would get their stalled DA arrear.
However, in the cabinet meeting, the government announced a 54% DA hike, but refused to give 18 months of stalled DA arrear. This decision has proved disappointing for many government employees.
Abbreviation of the scheme (Overview Table)
Description | Acquaintance |
Name of the scheme | Dearness allowance |
Implementation institution | Central government |
Beneficiary | Government employees and pensioners |
Stopped arrear time | January 2020 to June 2021 |
New da rate | 54% |
Arrear payment status | rejected |
Final decision | Cabinet meeting |
Effect | Millions of employees and pensioners |
54% Dearness Allowance: What does it mean?
The government has recently announced to increase the dearness allowance to 54%. This means that employees will get 54% of their basic pay as additional amount. This increase applies twice every year, January and July.
- DA Count Example:
If the basic salary of an employee is ₹ 20,000, then according to 54% DA, he will get an additional ₹ 10,800.
This increase will certainly improve the income of the employees, but their expectations have been destroyed due to non -payment of the stalled 18 -month arrears.
18 months stalled da arrear: Why not get it?
The government has clarified that in view of the economic crisis during the Korona epidemic, it was decided that DA and DR (Dearness Relief) would be temporarily prevented. Now that the economic situation has improved, the employees had hoped that they would get their stalled arrears. But the government has rejected it.
Reason:
- economic burden:
If the government gives a stalled DA arrear, it will cost about ₹ 34,000 crore. - Fiscal deficit:
There was an increase in fiscal deficit during the Korona epidemics, which is still challenging to control. - Priority of other schemes:
The government is focusing on other welfare schemes.
Staff response
Government employees and pensioners are very angry with this decision of the government. They have described it as a violation of their rights. Several employee organizations have planned to protest against this decision. They say that:
- The stalled arrears are their rights.
- He also faced difficulties during the Korona epidemic.
- The government should reconsider this decision.
Benefits from increase in dearness allowance
However 54% DA increase will provide some relief to employees:
- Their monthly income will increase.
- It will help to face rising inflation.
- Gratuity and pension will also increase after retirement benefits such as gratuity and pension.
Prospects in the coming time
Even though the government has just refused to give the stalled DA arrears, it can be reconsidered in future. Protests being organized by employee organizations may probably force the government to change their decision.
conclusion
Dearness allowance (DA) is an important part of the income of government employees and pensioners. While the 54% DA increase is a positive step, but not paying the 18 -month -old DA arrear has proved to be disappointing for millions of employees and pensioners.
The government should focus on the demands of the employees and pay their rights. This will not only increase the morale of the employees but will also strengthen the economic condition of the country.
Disclaimer:
This article is written only for the purpose of providing information. Whether the decisions taken in the cabinet meeting are real or not, should be confirmed by the concerned government notifications.