In a significant announcement by the Finance Department, it has been conveyed that government employees will soon receive the arrears related to the revised salary structure from January 2016, along with the pending Dearness Allowance (DA) arrears for pensioners starting July 2022. As per the directive, a monthly arrear of 0.25% of the revised salary or pension will be granted, a decision that faced opposition from the employees, leading to demands for a lump sum arrear payment.
The order issued on March 4th regarding arrear payments has been revoked by the Himachal Pradesh government on Monday. The government’s decision to nullify the order comes after dissatisfaction among employees and teachers regarding the 0.25% arrear formula. This move is being closely linked to the upcoming Lok Sabha elections, and there is speculation that new orders regarding arrears from January 2016 will be released soon.
Controversial Arrear Payment Formula Sparks Employee Backlash, Prompts Government Order Revocation
The order released on March 4th by the Himachal Pradesh government pertained to the pending arrears related to the 6th Pay Commission for regular government employees and DA arrears for pensioners since July 2022. The employees and pensioners were to receive a total arrear payment of 4% in the upcoming financial year. The revised salary arrears of 1.5% for March and 3% for the financial year 2024-25 were to be distributed at a monthly rate of 0.25% of the total pending arrears.
The 0.25% arrear formula faced opposition from employees, especially teachers, leading to the revocation of the order. It was decided that the arrear payment for employees and pensioners would be 24%, while pensioners with arrears less than INR 5000 would receive a lump sum amount.
The annual arrear payment of 3% was set to be distributed monthly at a rate of 0.25%, starting from April 1, 2024, for DA arrears related to the financial year 2024-25.
Government Reverses Controversial Arrear Orders Amid Employee Dissatisfaction and Sector-Wide Criticism
Employees expressed dissatisfaction with the formula, emphasizing that it would take 33 years to clear the arrears under the proposed scheme. The Education Department, Electricity Board, and University employees also criticized the orders, leading to the government withdrawing them.
After a meeting between employee unions and the Chief Minister on Tuesday, it was requested to reconsider and modify the notifications. The Finance Department promptly withdrew the orders by evening, indicating that new orders addressing the concerns may be issued soon. The arrears from the Pay Commission are applicable from January 1, 2016, while the DA arrears have been pending for government employees and pensioners since July 1, 2022.