7th Pay Commission: Big update on 18-months DA arrears issue, Rs 2.18 lakh to be given in 3 installments?

According to the annual report of the Department of Expenditure, there are a total of 48 lakh central employees in the country and about 60 lakh pensioners.

New Delhi: 7th Pay Commission latest update: After the recent hike in Dearness Allowance and Dearness Relief, the issue regarding the payment of 18 months-pending Dearness allowance (DA) arrears is once again gaining momentum. As per fresh reports, the Central government employees should not lose hope on getting pending arrears in their account. However, contrary to previous reports, the fresh media reports are hinting that the DA arrears might be given in 3 installments instead. The issue regarding payment of DA arrears of 18 months from January 2020 to June 2021 has long been pending for cabinet discussion and deliberation.

As per the media speculations, the DA arrears of employees at Level-3 can be estimated between Rs 11,880 to Rs 37,554. For Level-13 or Level-14, the arrears of employees can range between Rs 1,44,200 to Rs 2,18,200. However, upon further negotiations with the government, these figures might also change, said reports.

7th Pay Commission: Govt hikes DA by 4 percent to 38 percent

The Union Cabinet had on 28 September 2022, approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4 percent to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022. 

The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.

The additional financial implications on account of this increase of Dearness Allowance to Central Government employees are estimated at Rs.6,591.36 crore per annum; and Rs.4,394.24 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs.6,261.20 crore per annum; and Rs.4,174.12 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The combined impart on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs.12,852.56 crore per annum; and Rs.8,568.36 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).