7th Pay Commission latest news: The Centre’s latest statement on the 18-month Dearness Allowance (DA) arrears demand comes as a big blow for lakhs of government employees expecting something for the time when DA hikes were frozen due to impacts of the Covid-19 pandemic.
The Centre had put a freeze on DA hikes for government employees between January 2020 and June 2021. DA hike was resumed after the cabinet meeting on July 14, 2021. The DA for central government employees was then hiked outright by 11 percent. However, employees have been continuously raising demand for arrears for the period and had been hoping that the government would consider the matter.
But the latest reply from MoS Finance Pankaj Chaudhary comes as a big setback. The Centre, in a written reply, has said that “arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible”. It has reasoned that the “adverse financial impact of the pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spill over beyond FY 2020-21”.
“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 and 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances. As the adverse financial impact of the pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spillover beyond FY 2020-21, arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible,” MOS Chaudhary was reported to have said in his written reply to question on the matter.
The Centre’s answer suggests that the result of the long standing issue is unlikely to be fruitful for government employees. Meanwhile, central government employees can expect the announcement of the first DA hike of 2023 to arrive soon.
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