DA/DR Arrears 2024: A big good news has come for the central government employees and pensioners. The government has now taken action on the long running issue of DA/DR arrears. The proposal for 18 months outstanding DA/DR arrears has reached the government. This has raised hopes of providing major relief to lakhs of central employees and pensioners.
During the Corona epidemic, the government had banned the increase in DA/DR. Due to this, DA/DR arrears of 18 months from July 2020 to December 2021 are outstanding. Now the government is preparing to release this arrears. This is likely to bring a huge amount of money into the pockets of central employees and pensioners.
DA/DR Arrears 2024: At a glance
| Description | Information |
| name of the scheme | DA/DR Arrears 2024 |
| beneficiary | Central Government Employees and Pensioners |
| period of arrears | July 2020 to December 2021 (18 months) |
| reason for arrears | DA/DR hike put on hold during Covid-19 pandemic |
| proposed amount | Varies according to salary and grade pay of the employee |
| number of beneficiaries | About 50 lakh central employees and 65 lakh pensioners |
| current situation | Proposal under consideration with the government |
| Expected Payment Date | Will be announced after the approval of the Finance Ministry |
What is DA/DR arrears and why is it important?
DA i.e. Dearness Allowance and DR i.e. Dearness Relief are very important for central government employees and pensioners. This is a major part of their income. The DA/DR rate changes every 6 months, depending on the inflation rate.
During the Corona pandemic, the government had put a stop to the increase in DA/DR due to the economic crisis. Due to this, DA/DR arrears of 18 months from July 2020 to December 2021 became outstanding. Now the government is planning to release this arrears, which will be a big relief for the employees and pensioners.
DA/DR Arrears 2024: Who will get the benefit?
The scheme is expected to benefit the following people:
- About 50 lakh central government employees
- About 65 lakh central pensioners
- Employees of Central Public Sector Undertakings (PSUs)
- Employees of Central Autonomous Bodies
- Defense personnel and ex-servicemen
How will the amount of DA/DR arrears be calculated?
The amount of DA/DR arrears will be calculated on the basis of salary and grade pay of the employee. The following things are important in this:
- The DA/DR rate from July 2020 was 17%.
- It increased to 28% in January 2021.
- It again increased to 31% in July 2021.
Accordingly, employees in arrears of 18 months will get DA/DR at different rates. For example:
- July 2020 to December 2020: 17% DA/DR for 6 months
- January 2021 to June 2021: 28% DA/DR for 6 months
- July 2021 to December 2021: 31% DA/DR for 6 months
How much will be the benefit from DA/DR arrears?
The benefit received from DA/DR arrears will depend on the salary and grade pay of the employee. Some approximate figures are as follows:
- Level-1 Employees: Approximately Rs 11,880 to Rs 37,554
- Level-13 Employees: Approximately Rs 1,44,200 to Rs 2,18,200
- Level-14 Employees: Approximately Rs 1,82,200 to Rs 2,24,100
These figures are approximate and actual amounts may vary.
DA/DR arrear payment process
The process of payment of DA/DR arrears may take place in the following stages:
- Proposal Preparation: Finance Ministry will prepare the proposal for DA/DR arrears.
- Cabinet Approval: The proposal will be sent to the Cabinet for approval.
- Budget Allocation: After approval the budget will be allocated.
- Instructions to departments: Instructions for payment will be issued to all concerned departments.
- Distribution of amount: The amount will be transferred to the accounts of employees and pensioners.
Possible options for DA/DR arrear payment
The government may consider several options for payment of DA/DR arrears:
- Lump sum payment: The entire amount can be paid at once.
- Payment in installments: The amount can be divided into several installments.
- Partial Payment: Part can be deposited in cash and the rest in GPF or NPS.
- Phased payment: Payment can be made first to lower paid employees and then to higher paid ones.
Economic impact of DA/DR arrears
Payment of DA/DR arrears will also impact the country’s economy:
- Increase in expenditure: Due to extra money in the pockets of employees, demand in the market will increase.
- Boost to the economy: Increased purchasing will boost the economy.
- Burden on government exchequer: Payment of arrears will increase the financial burden on the government.
- Danger of inflation: A sudden excess of money in the market can lead to inflation.
DA/DR Arrears: Frequently Asked Questions (FAQs)
- Who will get DA/DR arrears?
Central government employees, pensioners, employees of PSUs and autonomous bodies will get it. - What is the period of arrears?
Arrears for 18 months from July 2020 to December 2021 are outstanding. - How much amount will you get?
The amount will depend on the salary and grade pay of the employee. It can range from thousands to lakhs of rupees. - When will the arrears be received?
The date has not been decided yet. The announcement will be made after government approval. - Will there be tax on arrears?
Yes, the arrear amount will be taxed as per income tax rules.
Disclaimer: This article is for informational purposes only. The information given regarding DA/DR Arrear 2024 has been collected from various sources and is not confirmed by government officials. Actual policies and decisions will be based on official documents announced by the government. Readers are advised to verify information from official government sources before taking any action. The author or publisher will not be responsible for any loss or damage caused by the use of this information.