DA: Resume immediately, pay arrears

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Since the pandemic broke out, those at the bottom of the pyramid have rightfully got an overwhelming share of the attention of policymakers who have rushed different kinds of relief from free foodgrains to cash assistance for them. The creamy layer on top do not need relief for themselves but have got assistance to keep their business going. The salaried middle class that is neither eligible for doles, nor is immune to the vicissitudes of fortune, is perhaps the worst hit.

The condition of the central government employees is a case in point. Their dearness allowance was frozen since January 1, 2020, and is supposed to be lifted from July 1, 2021. However, with the resumption just about 72 hours away, there is no word yet from the government. At least 1.15 crore central government employees are suffering from the beginning of 2020.

DA is paid to offset the impact of inflation and protect the real salary of an employee. A freeze on DA implies that the state is consciously and deliberately allowing erosion of the salaries of its employees.

Over the past 18 months, India has witnessed one of the worst financial upheavals with inflation rising to its highest levels in recent years. The CPI-based inflation that Reserve Bank tracks to formulate the monetary policy frequently breached the upper level of its tolerance at 6%. The prices of all essential commodities including food items, pulses, edible oil, animal protein, diesel, and petrol have risen consistently.

The government should immediately announce the resumption of payment of DA to its employees and prepare to pay arrears. The government’s tax collections and collection of dividends from public sector enterprises are showing buoyancy. It should open its purse strings for its employees who have been active soldiers in the fight against the pandemic.

Government employees, soldiers, and pensioners, everybody is waiting.