Dearness allowance (da) is a major constituent of pay to government servants and pensioners and helps lessen the effect of mounting inflation. Accumulated arrears of 18 months in DA have heated the discussion lately since the government had stalled the growth in DA and DR (Dearness Relief) since the start of the COVID-19 pandemic, beginning from January 2020 by June, 2021. This decision brought loses in form of lakhs of rupees to lakhs of employee and pensioners, and now they are demanding payment of this arrears.
Calculation And Possible Payment Of DA Arrears
DA arrears are determined from basic salary of the employee and prescribed increase rates. For instance, for an employee who is paid the basic salary of ₹50,000 the arrears of DA at 4% from January 2020 to June 2020 will be ₹12,000. On the same note a 3% rise from July 2020 to December 2020 is ₹ 21,000 and a 4% increase from January 2021 to June 2021 is ₹ 33,000. Overall, this employee can receive arrears of DA to the amount of 66000 rupees.
Government’s Stance And Employee Expectations
Nevertheless, the government has not clearly made up its mind to pay up this arrears. Finance Ministry had earlier reported that payment of this arrears could not be effected during these times of insecurity because of financial instability during the pandemic. But now, seeing the demand of employees and pensioners the problem may be reconsidered. DA rates are likely to go up by 4% from July 2024 which will give the employees more reprieve.
Potential DA Amount And Effects
The DA arrears estimations may differ from one pay level to another. For instance, level one employees can enjoy arrears between ₹ 11,880 and ₹ 37,554 and the level fourteen employees can benefit arrears between ₹ 1,44,200 and ₹ 2,18,200. This amount will enable improve the financial standing of the employees, and be useful in balancing their expenditure.
Conclusion
DA arrears issue is hugely important to lakhs of government employees and pensioners. The decision of the government is the apple of everyone’s eye and some concrete steps are sure to be taken on this soon. As long as the government finds a way to settle this arrears, it is a big relief to the employees and improves financial position of them. Now we shall see whether the government treats this demand with a pinch of salt or the workers receive their outstanding DA arrears.
Also Read: July 2025 DA Hike: Government Employees Set to Receive a Major Boost