The central government has raised Dearness Allowance (DA) for employees and pensioners and a move aimed at increasing the basic salary for lakhs of employees by providing required financial relief. However, from the good news arrives the illusion of disappointment for employees who have yet to see the 18-month DA arrears withheld during the pandemic.
Employees are still curious about when the 8th Pay Commission will be discussed. Here are the latest updates on these crucial developments.
DA Arrears Update
The Modi government has reiterated that it will not pay for the 18-month pending DA and DR (Dearness Relief) to the central employees and pensioners. The confirmation was made through written replies in both Houses of Parliament.
Why Were the DA Arrears Held Up by the Government?
During the hours of strain caused by Coronavirus, the government had frozen three installments of DA and DR from January 2020 to June 2021 to relieve financial burdens. Minister of State for Finance Pankaj Chaudhary stated in the Lok Sabha that the 18-month DA Arrears could not be paid since the economic burden of the pandemic and schemes setting up required funding instead.
This has disheartened many of the employees, considering that the regularity of DA revision was ensured by the 7th Pay Commission. The government, though, asserts that it took the right action to stabilize the economy in extraordinary times.
Current DA Hike: What Are Employees Going To Get Now
Accordingly, the 7th Pay Commission currently awards central personnel and pensioners a 53% DA. Of late, from an exclusive 2% allowance, an increase to 55% has been granted by the government. The rise is aimed at price adjustment and enhancing the financial welfare of employees.
8th Pay Commission: What Is the Latest?
The formation of the 8th Pay Commission has been a landmark decision that Prime Minister Narendra Modi approved on January 16, 2025. This is said to revise the salaries and allowances of 50 lakh central employees and 65 lakh pensioners.
When Will It Be Implemented?
The 7th Pay Commission was set up in 2016, and its time will end in December 2025. Given the past history, the formation of the 8th Pay Commission could hence happen by January 2026 while the new pay structure and benefits are expected to take effect thereafter.