Latest news with #DearnessRelief
Mint
4 days ago
- Business
- Mint
Will Centre pay 18 months' DA arrears to employees, pensioners frozen during Covid? Finance Ministry gives MAJOR update
The government has responded to a question on whether or not central government employees and pensioners will get their three instalments of Dearness Allowance (DA) and arrears frozen during Covid-19, saying that it was 'not feasible'. Answering a question at the Lok Sabha on August 11 regarding the roll out of three instalments of arrears that were frozen during Covid-19, Member of Parliament Anand Bhaduria cited economic disruption during that time and said that the arrears were frozen due to that reason. The government pays DA and arrears a cost-of-living adjustment to its employees and pensioners to offset the impact of inflation. DA is usually given twice a year to employees, while DR or Dearness Relief is paid to pensioners. The arrears are credited on a pro-rated basis. However, during Covid-19, the government had frozen these arrears for a period of 18 months, which comes down to three instalments. Here is a breakdown of the questions asked at the Lok Sabha and the government's answers on August 11. Answer: The decision to freeze three instalments 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, so as to ease pressure on Government finances. if so, whether fiscal condition of the Government is still under pressure and is on the verge of bankruptcy. Answer: The fiscal deficit of the Government of India has narrowed from 9.2 per cent in the Financial Year (FY) 2020-21 to 4.4 per cent in the FY 2025-26 (Budget Estimates). Answer: The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible.
News18
4 days ago
- Business
- News18
Will Govt Staff Get 18-Month Frozen DA Arrears? Here's What the Finance Ministry Says
Last Updated: Amid the COVID-19 pandemic, the central government put a hold on three instalments of dearness allowance to reduce financial strain during the economic disruption. During the COVID-19 pandemic, the central government froze three instalments of Dearness Allowance (DA) and Dearness Relief (DR) for its employees and pensioners. This decision came as a result of severe economic disruption and the need to reduce pressure on government finances. The move affected payments due from January 1, 2020, July 1, 2020, and January 1, 2021. The freeze prompted questions in Parliament regarding when the pending arrears would be cleared and the government's fiscal health during and after the pandemic. Member of Parliament Anand Bhadauria asked the government about the DA and DR arrears, seeking clarity on the reasons behind the freeze and the current status of payments. In response, the government explained that the freeze was necessary due to the pandemic's financial impact and the additional welfare measures undertaken to support citizens during that period. What is Dearness Allowance? Dearness Allowance (DA) is extra money given to government employees to help them keep up with rising prices. Dearness Relief (DR) is the same kind of support, but for pensioners, so inflation doesn't reduce their spending power. When asked whether the freeze was due to economic disruption and to ease pressure on finances, the government stated: 'The decision to freeze three instalments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees/pensioners due from January 1, 2020, July 1, 2020 & January 1, 2021 was taken in the context of COVID-19, which caused economic disruption, to ease pressure on government finances." On the question of the government's fiscal condition, the government clarified: 'The fiscal deficit of the government of India has narrowed from 9.2 per cent in the Financial Year (FY) 2020-21 to 4.4 per cent in the FY 2025-26 (Budget Estimates)." Regarding when the arrears of 18 months' DA/DR would be paid, the government explained that the economic impact of the pandemic, combined with additional welfare spending, left no room in the budget for these payments: 'The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible." This clarification comes amid growing talk about the 8th Pay Commission, which got approval from the Union Cabinet in January this year but hasn't been officially set up yet. Once the commission is formed, it will meet with stakeholders and prepare a detailed report, usually taking over a year. The report will suggest changes to salaries and allowances for central government employees. Typically, when a new pay commission is implemented, the DA is reset to zero. At present, under the 7th Pay Commission, DA is 55 per cent of basic pay. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
5 days ago
- Business
- India.com
7th Pay Commission 18-Months Frozen DA Arrears During Covid: Finance Ministry Responds On Payment Of Arrear Money
photoDetails english 2945261 Updated:Aug 13, 2025, 08:42 AM IST DA, DR Arrears for Central Government Employees during COVID-19 1 / 7 Following the cabinet approval for the formation of 8th Pay Commission, the demand for payment of 18 months-pending Dearness allowance (DA) that had been frozen from January 2020 to June 2021, has also been parallelly discussed by the central government employees. 18-Months Frozen DA, DR During Covid 2 / 7 The issue on 18-Months Frozen DA Arrear has also been raised a few times in the upper and the lower house of Parliament. Anand Bhadauria, the Samajwadi Party and the Member of Parliament representing the Dhaurahra Lok Sabha, raised the question in the lower house on 11 August 2025 regarding DA Arrears for Central Government Employees during COVID-19. 18-Months Frozen DA, DR: Will Arrears Be Paid? 3 / 7 He asked the Finance Ministry whether the decision to freeze 18 months dearness allowance and dearness relief for Central Government employees and pensioners during COVID-19 were taken due to economic disruption and to ease pressure on Government finances. If so, whether fiscal condition of the Government is still under pressure and is on the verge of bankruptcy. 18-Months Frozen DA, DR: Timeline Of Arrears 4 / 7 Bhadauria also sought the details thereof and the reasons for failure of the Government to keep the robust fiscal condition of the country upto the mark which it inherited in legacy in 2014. If not, the time by which the Government would release the arrears of 18 months DA/DR. 18-Months Frozen DA, DR: Ministry of Finance 5 / 7 Minister of State in the Ministry of Finance Pankaj Chaudhary, responding to the question said, "The decision to freeze three instalments 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, so as to ease pressure on Government finances." 18-Months Frozen DA, DR: Fiscal Deficit 6 / 7 The fiscal deficit of the Government of India has narrowed from 9.2 per cent in the Financial Year (FY) 2020-21 to 4.4 per cent in the FY 2025-26 (Budget Estimates), Chaudhary responded. 18-Months Frozen DA, DR: Arrears Not Feasible 7 / 7 The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible, Chaudhary responded.
Time of India
5 days ago
- Business
- Time of India
Will central government employees get arrears of 18 months of DA frozen during Covid 19? Here's what finance ministry says
During COVID-19, the central government froze three dearness allowance instalments. This decision aimed to ease pressure on public finances amid economic disruption. Member of Parliament Anand Bhadauria questioned the DA arrears. Tired of too many ads? Remove Ads What is Dearness Allowance? Tired of too many ads? Remove Ads The time by which the government would release the arrears of 18 months DA/DR? The central government froze three instalments of dearness allowance (DA) and dearness relief (DR) during the COVID-19 pandemic, citing severe economic disruption and the need to ease pressure on public finances. Member of Parliament Anand Bhadauria raised questions regarding the DA arrears for central government employees during COVID-19, to which the government responded with its official stance in Lok Sabha on August 11, Allowance (DA) is a cost-of-living adjustment paid by the government to its employees and pensioners to help offset the impact of read: Last DA hike of 3% or 4% under 7th CPC in July 2025? Central government employees can get this much increase in dearness allowance Dearness Relief (DR) is an allowance paid to government pensioners to help them cope with rising prices, similar to Dearness Allowance (DA) for working Wealth Online breaks down the government's official response to below key government responded in Parliament: The decision to freeze three instalments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees / pensioners due from January 1, 2020, July 1, 2020 & January 1, 2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on government government responded in Parliament: 'The fiscal deficit of the government of India has narrowed from 9.2 per cent in the Financial Year (FY) 2020-21 to 4.4 per cent in the FY 2025-26 (Budget Estimates).'The economic hit from COVID and extra welfare spending left no room in the budget to pay those delayed DA/DR government responded in Parliament: 'The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible.'
India Today
08-07-2025
- Business
- India Today
Will central government employees' dearness allowance reach 60%?
Central government employees and pensioners are waiting for a possible 3% hike in Dearness Allowance (DA) and Dearness Relief (DR), effective from July this announcement is not usually made in July. Traditionally, it is declared around the festive season, that is in September or October. But the benefit is calculated from government revises the DA/DR rates twice a year, effective from January 1 and July 1. However, the official announcement generally comes a few months instance, a hike applicable from January is usually announced in March, while the hike due from July is declared in September or October. The DA announcement for July 2025 is also expected to follow the same the current data leads to a 3% hike, the total DA would increase from 55% to 58%.HOW IS DA CALCULATED?DA is calculated based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW). In March 2025, the index was 143 and has reached 144 by May. If this trend continues, the possibility of a 3% hike becomes the implementation of the 7th Pay Commission, DA rates have steadily gone up. In 2016, DA was at 0%, and by January 2025, it had reached 55%. With a likely 3% hike in July, the figure could go up to 58%. After the next review in January 2026, if there's another 2% increase, DA may touch 60%.The proposed 8th Pay Commission, which may be implemented from January 2026, could merge the accumulated DA, possibly up to 60%, into the basic salary. This is a standard procedure during pay commissions, where the salary structure is revised and DA calculation starts afresh from the moment, this is a possible estimate based on the inflation index. But the final decision will be taken by the central government after Cabinet approval. Employees and pensioners will have to wait a few more months for the official announcement.- Ends advertisement
