DA Arrears: When Will Central Govt Employees Receive 18-Month Frozen Amount?
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The arrears pertain to 3 installments of DA hikes -- spanning the period from January 2020-June 2021 -- which were frozen as part of fiscal tightening measures during the pandemic.
DA Hike: The long-standing demand for the restoration of 18 months of dearness allowance (DA) and dearness relief (DR) arrears has once again come to the forefront, as central government employees continue to press for the release of the frozen dues. The issue was raised afresh during the 63rd meeting of the Standing Committee of the National Council of the Joint Consultative Machinery (NC-JCM), held on April 23, 2025.
The staff side of the NC-JCM strongly reiterated its demand for the payment of arrears that were withheld during the COVID-19 pandemic. The arrears pertain to three installments of DA/DR hikes — spanning the period from January 2020 to June 2021 — which were frozen as part of fiscal tightening measures during the nationwide crisis.
The government has maintained that the fiscal burden resulting from the pandemic and various financial welfare schemes introduced during the crisis made it infeasible to release the withheld amount. The government noted that the economic fallout of COVID-19 extended beyond FY 2020-21, impacting budgetary decisions in subsequent years.
This is not the first time that the staff side has raised the issue. Ahead of the Union Budget 2025, representatives of the NC-JCM had written to Finance Minister Nirmala Sitharaman, urging the government to consider releasing the pending arrears, citing both financial justice and rising living costs for employees and pensioners.
DA Revision Mechanism Disrupted During COVID-19
Under normal circumstances, DA for government employees and DR for pensioners are revised twice a year—in January and July — based on changes in the Consumer Price Index (CPI). However, amid the uncertainty caused by COVID-19, the government froze DA hikes for 18 months, impacting nearly 50 lakh central government employees and over 60 lakh pensioners.
Although DA hikes were resumed from July 2021 onwards, the frozen installments were never retrospectively paid, leading to consistent demands for their restoration by employee unions and staff federations.
8th Pay Commission Formed, But Clarity Awaits
The demand for arrears has gained further attention in light of the government's approval of the 8th Pay Commission in January 2025. Scheduled to be implemented from January 1, 2026, the Commission is expected to overhaul salary, pension, and allowance structures for central government employees.
However, despite its approval, the Commission's Terms of Reference (ToR) and the official appointment of its members are still pending. This has added to the uncertainty over whether employee concerns — including the unresolved DA arrears — will find a place in the new Commission's mandate.
'We expect the Terms of Reference to get the government's nod soon. It should be approved at the earliest," Shiv Gopal Mishra, secretary of the Staff Side of NC-JCM, has said in a recent statement to NDTV Profit.
No Timeline Yet for Arrears Restoration
While the demand for the release of DA/DR arrears continues to gather steam, no official commitment or timeline has been announced by the government so far. For now, employee unions remain hopeful that the matter will be addressed either through the 8th Pay Commission process or via separate financial consideration by the Centre.
Until then, the 18-month DA/DR freeze remains an unresolved chapter in the post-pandemic financial landscape for lakhs of central government employees and pensioners.
First Published:
June 06, 2025, 14:49 IST
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