A piece of good news has been brought from the central government for lakhs of employees as well as pensioners. The payout of DA Arrears has been decided in 2025, again shining smiles on the faces of government employees and pensioners alike. The decision is to adjust the already stated demands concerning the pending DA Arrears for 18 months. Let us know when and how this will be the arrears payments to be received and the new rules?
What Is DA Arrear?
DA (Dearness Allowance) Arrear amounts to the overdue that was supposed to be received by government employees and pensioners as dearness but which got delayed. DA Arrear for a total of 18 months from January 2020 to June 2021 would henceforth be paid in 2025. This amount will be calculated against the basic pay and pension of the staff.
How Much Arrear Will Be Received?
DA Arrears will be calculated according to the basic pay and pension of the employee. For example, if an employee had a basic pay of Rs 50,000 and the DA was at 4%, he would be entitled to receive us as arrear of Rs 2000 regarding the Rs 36,000 that would be received as a lump sum for 18 months. The same amount would be assigned to pensioners on the basis of this formula.
When Will The Payment Be Made?
The DA Recovery has been set by the central government for the completion of its payment by March 2025. This would be directly credited to the bank accounts of employees and pensioners. Certain state governments have hinted at the possibility of adopting similar measures, but no official announcement has been made yet.
What Is The Procedure Of Application?
For getting arrears of DA, there is no separate application. One only has to be a government employee or pensioner. The amount will be credited to the concerned employee’s registered bank account. If anyone does not possess these KYC or bank details, he or she has to approach the department.
Will Tax Apply On Arrears?
DA arrears would form a part of the salary under the definition of income tax. However, if any employee or pensioner is non-tax payable, he will not pay tax on that. Direct tax advice should be consulted in such cases.
What About The Employees Of State Governments?
Such a decision of the central government will not affect directly the employees of the state governments. However, states like Uttar Pradesh, Maharashtra, and Tamil Nadu have also promised their employees DA arrears. Keep checking your department for latest updates if you are a state government employee.
Conclusion
The payment of DA arrears is a huge relief for government employees and pensioners. This will not only improve their finances but also uplift their spirits. If you are one of the beneficiaries of this program, keep your bank details updated and await the payment in March 2025. Indeed, this project by the government is laudable and beneficial for millions of families.
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