The central government may announce a 3 percent increase in Dearness Allowance.
New Delhi: As was reported a few days back, the Centre is likely to announce the second hike in the Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners in the first week of September under the 7th Pay Commission.
Reports on Monday, 19 August 2024, indicate that the central government may announce a 3 percent increase in Dearness Allowance (DA) in September. This anticipated hike would bring the total DA to 53 percent. Nonetheless, it is improbable that the government will disburse the 18-month arrears of DA and Dearness Relief (DR) that were suspended during the COVID-19 pandemic.
To a question raised in the monsoon session of Parliament, two members raised queries regarding the government’s decision on the DA arrears: “Whether the government is actively considering to release an 18-month dearness allowance/ relief of central government employees/ pensioners which were withheld during COVID outbreak”, Minister of State for Finance Pankaj Chaudhary replied, “No”.
“The decision to freeze three installments of Dearness Allowance (DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, to ease pressure on Government finances. As the adverse financial impact of the pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spillover beyond FY 2020-21, arrears of DA/DR were not considered feasible.”
It is anticipated that the central government will declare a 3 percent increase in Dearness Allowance (DA) and Dearness Relief (DR) in September 2024, to be effective from July 1, 2024. Authorities involved have indicated that the DA will not be consolidated with the basic salary even if it exceeds 50 percent, and it will remain unchanged until the establishment of the 8th Pay Commission.
The DA was raised by 4% to take the level to 50% of the basic in January this year and it was reported on August 2 that the Central government will increase the DA by 3% in September effective from July 1, 2024.