During the monsoon session of Parliament, the issue of the non-payment of 18-month Dearness Allowance (DA) arrears was revisited. Two members of Parliament (MPs) questioned the Centre regarding the release of the DA arrears for central government employees and pensioners that had been withheld due to the COVID-19 pandemic. They requested an explanation for the delay, given that the Indian economy is now the third largest in the world. The MPs also sought information on the representations received in 2024 regarding this issue and the actions taken.
Government’s Response
In response, Pankaj Chaudhary, Union Minister of State for Finance, provided a written reply in the Rajya Sabha. Chaudhary explained that the decision to freeze three instalments of DA/Dearness Relief (DR)—due on January 1, 2020; July 1, 2020; and January 1, 2021—was made to mitigate the economic impact of COVID-19. The freeze was intended to ease financial pressure on government finances during the pandemic.
Regarding representations, Chaudhary noted that the government had received appeals from various employee associations, including the National Council of Joint Consultative Machinery (NCJCM). He explained that due to the adverse financial impact of the pandemic and the extended fiscal burden of government welfare measures, the release of DA/DR arrears was deemed infeasible.
The freeze on these DA instalments resulted in a savings of Rs 34,402.32 crore, which was used to manage the economic fallout of the pandemic.
Recent Developments
In June, following Narendra Modi’s re-election as Prime Minister, the Centre received a proposal from the National Council (staff side) of the Joint Consultative Machinery for Central Government Employees. The proposal included a request to clear the 18-month DA arrears. The NC JCM’s letter emphasized the concerns of central government employees and pensioners and urged the government to release the frozen DA arrears.
Opposition Criticism
Former Uttar Pradesh Chief Minister and Samajwadi Party chief Akhilesh Yadav has criticized the Centre for its decision to freeze the DA arrears, highlighting the dissatisfaction among central government employees and pensioners.
