Will govt employees be paid DA, DR arrears for Covid times ahead of 8th Pay Commission? What we know

Central government employees and pensioners have been waiting for the release of Dearness Allowance (DA) and Dearness Relief (DR) arrears withheld during the COVID-19 pandemic ahead of the 8th Pay Commission.

The arrears, which remained unpaid for 18 months during the pandemic period, have been a long-standing demand among millions of beneficiaries. However, the Finance Ministry clarified in 2020 that these pending payments couldn't be released at this stage. According to the ministry, there was no possibility of disbursing the withheld DA and DR arrears, despite continued requests from employees and pensioners for their settlement.

What did that notification say?

“The undersigned is directed to say that in view of the crisis arising out of COVID-19, it has been decided that the' additional instalment of Dearness Allowance payable to Central Government employees and Dearness Relief to Central Government pensioners, due from 1st January 2020 shall not be paid. The additional instalments of Dearness Allowance and Dearness Relief due from 1st July 2020 and 1st January 2021 shall also not be paid,” it had said in 2020.

It added, “As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from 1st July 2021 is taken by the Government, the rates of Dearness Allowance and Dearness Relief as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid.”

The notice from the 8th Central Pay Commission, issued on 24 April, confirms that the Commission has received a large number of requests from unions and associations for meetings in Delhi scheduled from 28 April to 30 April. Due to the compressed schedule and the high volume of requests, the Commission said it will not be possible to accommodate all of them during these dates, as per reports.

At the recent 8th Pay Commission meeting in Dehradun, one of the demands by central employees and their affiliated organisations was the payment of 18 months' DA arrears.

The Commission said it plans to hold further meetings in Delhi and other States and Union Territories in the coming months. Stakeholders based outside of the Delhi NCR region who are interested in interacting with the Commission are encouraged to seek appointments when the Commission visits their respective State or a nearby location.

Cabinet approves 2% DA hike for central government employees

Meanwhile, the government on 18 April approved a 2% increase in DA for central government employees and DR for pensioners, providing relief to nearly 50.46 lakh employees and 68.27 lakh pensioners.

Information and Broadcasting Minister Ashwini Vaishnaw said the decision was taken during the Cabinet meeting chaired by Prime Minister Narendra Modi. He said the combined financial burden on the government due to the hike in DA and DR would be ₹6,791.24 crore annually.

The revised rates came into effect from 1 January, raising the existing DA and DR from 58% to 60% of Basic Pay and Pension. The move is intended to help employees and pensioners cope with rising prices.

The increase has been approved in line with the established formula, as recommended by the 7th Central Pay Commission.