As we are aware, there is a piece of good news for central employees and pensioners. The announcement of the government is that the release of Dearness Allowance (DA) arrears will take place shortly, until January 2025. The mentioned DA would be given for 18-month arrears running from July 2023 to December 2024. Around 50 lakh employees and 65 lakh pensioners will benefit from this. Let us know about it in detail.
What Will Be The Amount Of Arrears?
The DA arrears will be based on the basic salary of the employees. For instance, let us assume that an employee’s ō0 is dull and basis salary is 50,000 per month, then for 4% DA increment, they will be entitled to DA arrears of 2000 per month. The total arrears will amount to 36,000 for 18 months. Senior officers and higher salary earners may get more.
When Will It Be Completed?
After Ministry of Finance promulgations on March 2025, the payment of DA will be completed. In some ministries the payment operation commences with February 2025 salary. Departments concerned of the employees shall keep official information in this regard.
Is This Amount Tax-Exempt?
DA arrears will be charged according to the Income Tax rules. Yet there is some demand to make this amount tax-exempt while declaring the budget for the financial year 2025-26. Until now, the government has not declared any announcement. As it stands, the employees should factor this amount into their tax planning.
What Next For State Government Employees?
With the announcement of the DA payment, state governments were pushed to release their employees’ DA arrears. States such as Kerala, Tamil Nadu, and West Bengal have declared the payment of their employees’ arrears. Other states may follow suit quite soon.
Pensioners Arrangements?
Pensioners are also going to benefit from this scheme of the Central Government. Their arrears shall be credited automatically into their bank account. No separate application is needed from their side. But they must check their bank details themselves.
Conclusion
The payment of DA arrears has come as a huge relief for central employees and pensioners. DA assistance, besides strengthening their financial position, will also add to their purchasing capacity. All the beneficiaries have been advised to keep on updating themselves about this issue through their respective departments.
Thus, the payment of DA arrears gives an important financial aid for government employees in this period of inflation. The decision of the government will surely be a boost for the morale of employees and further strengthen their financial security.
Also Read: Big Update On Old Pension Scheme (OPS), Government Took A New Decision, See Details
