DA Hike: What is the reason that after waiting for 3-4 months the government announces DA and then the payment is made. However, the government pays arrears to the central employees in lieu of this, but what is the reason behind the delay.
DA Hike: Increase in dearness allowance for central employees is to be announced. The wait for this has been very long. Employees have to wait for 3-4 months for dearness allowance to be implemented from July 1. For this one has to wait till August, September, October. But, why does it take so long? Why doesn’t the government announce this till August? What is the reason that after waiting for 3-4 months the government announces DA and then the payment is made. However, the government pays arrears to the central employees in lieu of this, but what is the reason behind the delay.
Due to this there is delay in dearness allowance
There are two major reasons for the delay in increasing the dearness allowance of central employees. The first reason is that AICPI index data comes with a delay of one month. Dearness allowance is implemented from July on the basis of data from January to June. But, for this the figures of June are final. The AICPI number for June comes at the end of July. Therefore, the same increase cannot be approved till August. However, it can be announced from September 1. But, the government continues to stop it.
The second major reason is the financial burden on the government treasury.
The main reason for the government’s delay in approving the increase in dearness allowance is the financial burden on the government exchequer. Giving dearness allowance under the 7th Pay Commission will put a financial burden of Rs 12,000 to 18,000 crore on the government. To maintain this, the government waits for 3-4 months to increase the DA/DR rates. During this time, the government tries to reduce the extra burden by investing money. Interest is earned on investments and then it is released to the employees. This is a normal process. Therefore, some delay in this is inevitable.
Half of October is over, where is the dearness allowance?
According to the Confederation of Central Government Employees and Workers, as per the rules, dearness allowance and dearness relief increase from January 1 and July 1. But, the central government announces it every year by March or September. This time it is expected to be announced more late. Half of October has passed but no formal statement has come from the government yet. It is expected that by announcing this by Dussehra, the government can give gifts to the central employees in the festive season.
The increased rate of DA should be announced soon
If sources are to be believed, the Confederation has written a letter to the Finance Minister demanding an early announcement regarding the payment of dearness allowance. However, there has been no comment on this from the ministry yet. It has been written in the letter that due to late announcement there is loss to the employees. Whereas they are given dearness allowance to cope with the cost of living. 48 lakh central government employees and more than 62 lakh pensioners get the benefit of increase in DA/DR.