7th Pay Commission Big News: Modi Government To Release Pending DA Arrears Before Dec 25

Central Government Employees may soon get the long-awaited news that their Dearness Allowance (DA) arrears, which have been suspended for the past 18 months, would be paid. 

The allowance rate had been raised from 17% to 28% by the Prime Minister Narendra Modi government. Later in October, the allowance rate was increased by another 3%.

One Time Settlement of DA Arrears

According to multiple media reports, the Cabinet Council has demanded that, as part of the restoration of DA, a one-time settlement of DA arrears, which have been frozen for 18 months, be made. As per certain reports, a meeting of the Union Cabinet and the Cabinet Secretary will be held in this respect before December 25.

The National Council of JCM, the Department of Personnel and Training, and the Ministry of Finance have already discussed the arrears. However, no decision has been made as of yet. 

For the uninitiated, the DA is a cost-of-living adjustment allowance paid by the government to public sector employees as well as retirees who worked in the same sector.

Due to the COVID-19 pandemic, the finance ministry halted the DA hike in May 2020. On June 30, 2021, the halt was lifted. The Indian Pensioners' Forum, or Bharatiya Pensioners Manch (BMS), has also urged PM Modi to clear central employees' and pensioners' arrears of Dearness Allowance and Dearness Relief.

Final Decision To Be Made by Prime Minister Narendra Modi

Now, the Prime Minister must make a definitive decision on the pending 18-month DA arrears; the employees are overjoyed.

If PM Modi provides his approval, a large sum of money will be transferred to the employees' bank accounts. The DA has previously been raised to 31% by the Modi government. This affects more than 48 lakh central government employees and more than 65 lakh retirees.