Central Government employees and pensioners across India have been demanding the release of Dearness Allowance (DA) and Dearness Relief (DR) arrears that were stopped for 18 months during the Covid-19 pandemic. Even in 2025, this issue continues to be raised in official meetings between the government and staff representatives.
This article explains, in simple language, what happened, what the government has officially stated so far, and what employees and pensioners can realistically expect in the future.
Why Were DA and DR Arrears Stopped? (Official Background)
During the Covid-19 pandemic, the Government of India faced a serious financial crisis due to:
- Nationwide lockdowns
- Fall in economic activity
- Sudden increase in health and welfare expenditure
In this situation, the Union Cabinet decided in April 2020 to freeze DA and DR increases for Central Government employees and pensioners for 18 months, covering:
01 January 2020 to 30 June 2021
This decision was officially communicated through orders of the Ministry of Finance, Department of Expenditure. The government made it clear that:
- DA/DR rates would be restored later
- No arrears would be paid for the frozen period
Dearness Allowance and DR were restored from 01 July 2021, but arrears for the frozen period were not released.
What Is the Current Demand of Employees and Pensioners?
Employee unions and pensioner associations have consistently demanded that:
- The withheld 18-month DA/DR arrears should be paid
- The arrears are a legitimate financial entitlement, not a bonus
- Government employees continued to work during the pandemic, especially in essential services
This demand has been repeatedly raised through:
- National Council (JCM) meetings
- Representations to DoPT and Ministry of Finance
- Parliamentary questions by Members of Parliament
Discussion in JCM Meetings (What Is Officially Known)
In recent meetings of the National Council – Joint Consultative Machinery (JCM), including meetings chaired by senior officials of the Department of Personnel & Training (DoPT), staff representatives again raised the issue of DA/DR arrears.
Staff Side View (As Recorded in JCM Minutes)
- Employees worked under difficult conditions during Covid-19
- Pensioners and family pensioners faced medical and financial hardship
- The arrears should be released as a one-time humanitarian measure
Government’s Official Stand
The Ministry of Finance has maintained its earlier position that:
- The decision to freeze DA/DR was taken due to extraordinary financial stress
- Government expenditure increased sharply during Covid-19 due to relief measures
- Payment of arrears would create a heavy financial burden on the exchequer
As of now, no official assurance has been given for releasing the arrears.
Has the Government Rejected the Arrears Permanently?
While there is no separate “rejection order” issued as a standalone notification, the Government of India has repeatedly clarified in written replies in Parliament that the DA/DR freeze was a conscious decision taken due to financial constraints, and that there is no proposal under consideration at present to release arrears for the 18-month period (01 January 2020 to 30 June 2021).
This effectively means that as of the latest official updates, arrears are not payable, although employee unions and pensioner bodies continue raising the demand through JCM and other official forums..
8th Central Pay Commission: Related but Separate Issue
During the same discussions, employee representatives also raised concerns about the 8th Central Pay Commission.
What Is Officially Known
- The government has acknowledged the need for a future Pay Commission
- Internal processes and consultations are underway
- No official notification fixing the date of implementation has been issued yet
Employees have demanded that:
- If the 8th Pay Commission is delayed,
- Arrears should be paid from the effective date, whenever implemented
At present, this remains a demand, not a confirmed decision.
Central Government Employees Group Insurance Scheme (CGEGIS)
Another issue discussed officially is the revision of CGEGIS.
According to information shared by the Department of Expenditure:
- A revised proposal for CGEGIS is under preparation
- The aim is to improve insurance coverage and benefits
- The proposal will be shared with staff representatives for consultation
This matter is under active examination, but final decisions are awaited.
Sentiments of Employees and Pensioners
Employee unions and pensioner bodies have expressed dissatisfaction because:
- DA/DR arrears were stopped when employees needed support the most
- Pensioners, widows, and senior citizens were badly affected during Covid-19
- The arrears represent deferred compensation, not a concession
They have urged the government to adopt a compassionate and welfare-oriented approach, especially for pensioners and family pensioners.
What Should Employees and Pensioners Expect Now?
As of today:
- ❌ No official date has been announced for DA/DR arrears payment
- ❌ No budgetary provision has been publicly confirmed
- ✔️ The issue continues to be raised at official forums
- ✔️ The demand remains alive through JCM and Parliament
Employees and pensioners are advised to:
- Rely only on official government notifications
- Be cautious of rumours and social media claims
- Track developments related to Pay Commission and Dearness Allowance orders
Conclusion
The demand for 18-month DA/DR arrears is genuine and continues to be raised through constitutional and official mechanisms. While the government recognises the hardship faced by employees and pensioners during the pandemic, it has consistently cited financial constraints as the reason for not releasing the arrears so far.
Whether the government will reconsider this issue in the future will depend on:
- Fiscal position of the government
- Policy priorities
- Political and administrative decisions
For now, the matter remains unresolved but alive.
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Q1: What is the 18-month DA/DR arrears issue?
A: It is the unpaid DA/DR amount for the period when DA/DR was frozen during Covid-19 for Central Government employees and pensioners.
Q2: Which period DA/DR was frozen for 18 months?
A: DA/DR was frozen from 01 January 2020 to 30 June 2021.
Q3: Why did the Government stop DA and DR during Covid-19?
A: Due to financial stress caused by lockdowns, fall in revenue, and increased public expenditure during the Covid-19 pandemic.
Q4: Was DA/DR restored after the freeze period?
A: Yes. DA/DR was restored from 01 July 2021, but arrears for the frozen period were not released.
Q5: Are Central Government pensioners also included in this demand?
A: Yes. Pensioners and family pensioners are included because DR (Dearness Relief) was also frozen for the same period.
Q6: What is the Government’s official stand on arrears payment?
A: The Government has stated that paying DA/DR arrears would create a heavy financial burden, and currently no proposal is under consideration to pay it.
Q7: Will the 18-month DA/DR arrears be paid in 2026?
A: As of now, there is no official announcement or confirmed date, so arrears remain pending and not payable unless the Government changes its decision.
Q8: Is 8th Pay Commission linked with DA/DR arrears?
A: No. The 8th Pay Commission is a separate matter. DA/DR arrears are a different demand and are not automatically included in pay commission implementation.
