Dearness Allowance Update: Central govt employees to get DA arrears soon? Here's what you need to know

New Delhi: According to reports, the central government has stated that DA arrears kept from January 2020 to June 2021 will not be released at this time. In light of the exceptional scenario created by the COVID-19 pandemic, the federal government had set aside three instalments of DA and DR for January 1, 2020, July 1, 2020, and January 1, 2021.

Government employees receive dearness allowance, whereas retirees receive dearness relief.

According to a media report, a representative of the Department of Expenditure (DoE) stated that the amount of DAs and DRs that had been frozen would not be restored during the 32nd meeting of the standing committee of voluntary agencies for review and rationalisation of pension rules, which was held under the chairmanship of Union Minister for Pensioners Welfare Jitendra Singh.

Last month, the Union Cabinet authorised a 3% rise in the dearness allowance (DA) under the 7th Pay Commission, bringing the DA to 34% of the basic income. This decision benefits nearly 50 lakh government employees and 65 lakh retirees.

"The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the release of an additional instalment of dearness allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. January 1, 2022, representing a 3% increase over the existing rate of 31% of basic pay/pension, to compensate for price rises," the Prime Minister's Office said in a statement.

The DA and DR have lately been increased by the government. Since the freeze was lifted in July 2021, DA and DR have witnessed three rises and have nearly doubled.

After a long gap, the Centre increased the DA and DR for central government employees and pensioners to 28 percent and 17 percent, respectively, in July 2021. The Dearness Allowance for central government employees increased by 3% again in October 2021. Then, starting in July 2021, the DA for central government employees was raised to 31%. From January 2022, salaried employees would receive a 34 percent increase in DA and DR, up from the previous rate of 31 percent.

The central government is also said to have denied pensioners' request for the release of dearness relief (DR) funds that were kept during the early stages of the COVID-19 pandemic.