The compensation of 28% of central employees has started to arrive in their accounts, but they are still disappointed on one front. Their expectations regarding the 18-month arrears of employees were not met. When the government announced the cost allowance, it was said that they would only receive the enhanced cost allowance, but the arrears were denied.

However, the news of the 18-month arrears has reached Prime Minister Narendra Modi, who will now make a decision on the matter. The hopes of central staff regarding the arrears were rekindled as a result. If Prime Minister Modi approves the 18-month arrears, a significant sum will be deposited into the accounts of around 1 crore of central employees and retirees. Also Read: Post Office Scheme: Get Rs 3,300 Pension Every Year By Simply Depositing Rs 50,000

The cost allowance for central government employees has now been doubled to 28%. This affects over 48 lakh central government employees and over 65 lakh retirees.

The Indian Retirees Forum (BMS) contacted Prime Minister Narendra Modi with a letter requesting payment of the DA and DR arrears. BMS requested that Prime Minister Modi intervene in this matter and further asked the Ministry of Finance to pay off the DA / DR arrears retained between January 1, 2020 and June 30, 2021 as soon as possible. Retirees complain that since the suspension of the DA / DR, retail price inflation has increased, with gasoline, diesel, edible oil and legume prices hitting new highs. Also read: LIC Jeevan Labh Policy: Get Rs 17 lakh by investing Rs 233 every month. Details here

Due to the Covid-19 pandemic, the Ministry of Finance has postponed the increase in AD from May 2020 to June 30, 2021. It will be reintroduced on July 1, 2021. Three price allocation tranches have been released since then. A total of 11% DA has been granted for the months of January 2020, July 2020 and January 2021. For these 18 months, however, no dearth allowance arrears have been paid. During the monsoon session, the Minister of State for Finance explained in a written statement to the Rajya Sabha that no decision regarding the arrears had been taken.

Employees and retirees receive DA / DR as a kind of compensation for the increased cost of living. Over the past 18 months, the price has increased at a tremendous rate. Withholding money during this time is not in the best interests of employees and retirees in this situation. The majority of retirees are seniors, according to the letter. Medicines are expensive. In addition, the incomes of most retirees are so low due to the Covid-19 situation that they can only feed their stomachs.

According to BMS, the country is undoubtedly going through a financial crisis. The majority of retirees made a one-day contribution to the Prime Minister’s Citizen and Emergency Relief Fund (PM CARES). If they want help, the government should pay “DA / DR”.