Introduction
The incessant pressure of the Dearness Allowance (DA) that usually pays central government employees and pensioners may now lift some from the shoulders of the workers; all is not well here, despite the fact that the past times witnessed a peak of 3.4%.
Understanding Dearness Allowance (DA)
The allowance is basically the salary which has to be paid by the employer to the employee without the deduction of anything. It depends on the salary generally except in the case of the elderly pensioners where it is calculated based on the basic family pension being simple.
Central Government Policy on DA
The Central Government has a policy regarding this to pay more to the left-behind employees and the pensioners thereby getting them BPS beneficially. Nonetheless, the hike is yet unknown and has to be disclosed by the providers of the Employees’ Union.
Role of Trade Unions in DA Implementation
The success of DA implementation will depend on the capacities of the trade unions that will demand more organization and better services of the retired personnel. The Employees Union is the one that is protecting the employees for a long time and makes the management go through with the workers’ demands.
Comparison of DA Hikes Over the Years
| Year | DA Hike (%) |
|---|---|
| July 2018 | 2% |
| January 2019 | 3% |
| July 2019 | 5% |
| January 2020 | 4% |
| July 2020 – June 2021 | (DA Frozen Due to COVID-19) |
| July 2021 | 11% (Including Previous Freezes) |
| January 2022 | 3% |
| July 2022 | 4% |
| January 2023 | 4% |
| July 2023 | 4% |
| January 2024 | 4% |
| January 2025 (Expected) | 2% |
Employee Union’s Role in DA Protection
The Union does it consciously working with the employers, and management only by this way will protect the employees. The management should consider the extra conditions added to the Dearness Allowance.
Employees and Allowance Distribution
Such are the employees who are paid and may receive other allowances as well. There will be the employee who is not paid the allowance due to the deathning of the employee.
Effect of Pay Code on Dearness Allowance
The pay code which controls the allowance is the one which affects the deathning allowance and the allowances that are paid.
Management’s Perspective on DA and Allowances
The managers and supervisors will take a position opposite to such a decision saying they are paid allowance and taxes are taken, too. There will be disagreement between them to settle this type of issue.
Process of DA Payment
The process will be the payment of deathning allowance on a date that is particular to other allowances. Employees who get other allowances may be the ones allowed.
DA for Employees Without Regular Payment
The allowance will also be given to the person who is not paid and the allowance will be processed with your regular check.