Money9 Edit | Keep the 7th Pay Commission DA defreeze promise; salaried class needs relief too!

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The second wave of pandemic has devastated urban India. India Inc has demonstrated a compassionate face this time around. It is now the turn of the Union government to open up its purse strings to improve the pay-out to government employees. The government froze last year Dearness Allowance (DA) benefits of central government servants and pensioners till June 2021.

In March 2021, however, the government said DA benefits will be restored from July 1, 2021. It must live up to its promise. States must follow suit. Fiscal prudence can wait.

The Union Ministry of Labour & Employment announcement last week of a hike in variable dearness allowance for more than 1.5 crore workers in the central sphere is most welcome.

The hike, which will be effective from April 1, 2021, will also result in an increase in rate of minimum wages for central sphere employees and workers.

It will be for scheduled employment in central sphere and applicable to the establishments under the authority of central government, railway administration, mines, oil fields, major ports or any corporation established by the central government. These rates are equally applicable to contract and casual employees/workers.

The government in its right wisdom froze dearness allowance (until June 2021) to central government employees in view of the first Corona wave. The DA release is due to an estimated one crore plus central government employees and pensioners.

The salaried and the pensioner class is the most committed tax paying bucket hence deserves to get its fair due. It stood with the government as it took a call to embrace austerity last year. Release of DA would actually boost the demand cycle and give an impetus to the economy.