Will central government employees and pensioners ever be paid dearness allowance (DA) arrears frozen during the COVID-19 period? This question has been on the minds of over 1 crore central government staff for nearly five years, but now it seems even the employees and retirees have given up.
For a long time, employees and several staff unions were hopeful that the arrears of DA withheld during the pandemic would be paid at some point. Employee organisations repeatedly raised this issue and wrote letters to the government. However, a recent development has made it clear that receiving arrears for this period is almost impossible, as employees have probably given up on this.
Why was DA withheld during COVID-19?
In March 2020, when the COVID-19 pandemic brought economic activity to a halt in the country, the central government froze the dearness allowance (DA/DR) of central employees and pensioners for 18 months. The government stated that the country’s economy was under unprecedented pressure at that time and that significant expenditures were needed on several key fronts.
The government also clarified several times in Parliament that the DA was withheld so that the money could be spent on fighting COVID-19, health services, and other priorities. The Finance Ministry also reiterated in its responses that arrears for that period could not be paid to employees.
Employees’ persistent efforts
Despite this, central employees and unions did not give up hope. Employees repeatedly raised the issue and tried to persuade the Finance Ministry. Employees argued that this was their right and that arrears should be paid once the situation returned to normal.
Recent developments clear the picture
Recently, a high-level delegation from the Government Employees National Confederation (GENC), the apex body of industrial federations affiliated with the Bharatiya Mazdoor Sangh (BMS), met with Union Minister Jitendra Singh. During the meeting, the delegation raised several long-pending demands of employees. The delegation had originally included the issue of DA arrears also, but surprisingly, it was voluntarily withdrawn before the meeting. This means that employee organisations have also decided not to pursue this issue.
Other issues discussed in the meeting:
-Restoration of commuted pension after 12 years (instead of 15 years)
-Increasing the quota for compassionate appointments by 5%
-Abolition of the National Pension System (NPS) and implementation of the Old Pension Scheme (OPS)
-Constitution of the 8th Pay Commission (CPC)
-Reducing the residency period for promotion.
DA matter excluded: What does this mean for employees?
Following this development, it is almost certain that central employees and pensioners will never receive the DA/DR arrears withheld during the COVID period (Jan 2020 to June 2021). While this decision may be disappointing for employees, any further hope for a resolution to the matter is futile now that the matter has been closed.
What’s next?
Employees and unions are now focused on other pressing issues, particularly the restoration of the OPS, the formation of the 8th Pay Commission, and promotion-related issues. The chapter on DA arrears can now be considered closed.