The central government has announced an increase in Dearness Allowance (DA) for employees and pensioners, bringing some financial relief. However, many employees are still disappointed because the government has refused to pay the pending 18-month DA arrears from the COVID-19 pandemic period. Additionally, government employees are eagerly waiting for the 8th Pay Commission and its impact on their salaries.
No Payment of 18-Month DA Arrears
The government has made it clear that it will not pay the pending DA and Dearness Relief (DR) arrears for central employees and pensioners. This confirmation was officially given in written statements in Lok Sabha and Rajya Sabha.
Why Were DA Arrears Withheld?
During the COVID-19 pandemic, the government decided to freeze three DA and DR installments from January 2020 to June 2021. The reason for this was to manage financial burdens and allocate funds for pandemic relief efforts. Minister of State for Finance, Pankaj Chaudhary, explained that the government had to focus on economic recovery, and therefore, the arrears could not be paid.
This decision has caused frustration among employees, as DA hikes were supposed to continue under the 7th Pay Commission. However, the government maintains that this step was necessary to stabilize the economy.
Latest DA Hike and Its Impact
Currently, central government employees and pensioners receive 53% DA under the 7th Pay Commission. The latest announcement has increased DA by 2%, bringing it to 55%.
This increase is meant to adjust salaries according to inflation and provide financial relief to government employees and pensioners. While this hike offers some benefit, many employees still remain worried about their unpaid arrears.
8th Pay Commission: What Employees Need to Know
A major development is the announcement of the 8th Pay Commission, which was approved by Prime Minister Narendra Modi on January 16, 2025. The new pay commission is expected to revise salaries and allowances for nearly 50 lakh central employees and 65 lakh pensioners.
When Will the 8th Pay Commission Be Implemented?
The 7th Pay Commission was introduced in 2016 and will remain in effect until December 2025. Based on previous patterns, the 8th Pay Commission may be formed in January 2026, and the new salary structure will be implemented soon after.
Conclusion
While the increase in DA provides some relief, government employees are still disappointed about unpaid arrears. Many are now looking forward to the 8th Pay Commission, hoping for better salaries and benefits. The coming years will be important in shaping the future of central government employees and pensioners.