Imagine this:
During the height of the pandemic, Lakshmi—a devoted central government employee—noticed a gap in her salary. The three frozen Dearness Allowance (DA) hikes, spanning January 2020 to June 2021, amounted to 18 months DA arrears. These were held back to ease the financial burden on the government. Fast forward to August 2025: DA hikes are back—but those arrears? Still unpaid. The question remains: Will these be released now? Let’s explore the latest updates and what Parliament said about it.
What Are DA Arrears & Why Were They Frozen?
Dearness Allowance (DA) is a cost-of-living adjustment paid to central government employees, with a corresponding Dearness Relief (DR) for pensioners.
As COVID-19 struck, the government froze three installments—due:
January 2020
July 2020
January 2021
This pause led to a backlog of 18 months of unpaid DA/DR. The freeze helped the government manage massive welfare spending during the crisis.
Employees’ Union Demands
Employee bodies, including the National Council (JCM), have repeatedly demanded:
Full payment of the 18 months DA/DR arrears
Possibly interest or a one-time ex-gratia to compensate for delays
Official clarification if arrears will be merged with future pay revisions
Their core argument: Inflation has surged, and employees deserve their rightful earnings.
Government’s Official Stand (Including Recent Parliament Q&A)
Parliamentary Update
In the Lok Sabha, MP Anand Bhadauria raised the issue via an Unstarred Question No. 3638 on August 11, 2025. Minister of State for Finance, Pankaj Chaudhary, responded:
- The DA/DR freeze was necessary due to COVID-19’s economic disruption.
- Fiscal deficit has improved—from 9.2% in FY 2020-21 to 4.4% in FY 2025-26.
- Despite better fiscal health, the residual impact of welfare spending and pandemic-era commitments makes paying the 18 months arrears unfeasible.
Similarly, in Rajya Sabha (Unstarred Question No. 236 on February 4, 2025), the government reiterated the same stance—released arrears remain off the table due to lasting fiscal pressure.
Key Government Position
No plan to pay the frozen arrears, as confirmed in both houses of Parliament.
The stance is firmly rooted in maintaining fiscal discipline, even despite improved deficits.
Latest Updates (August 2025)
DA has resumed since July 2021 and is currently around 55%, expected to rise by 3% (to 58%) later this year — likely around Diwali.
No official notification yet on pending arrears—this remains unresolved.
Employee unions continue to press the issue through formal outreach, but no protests are currently planned.
Speculations persist that the government may review the matter before the 2026 Pay Commission, but nothing is confirmed.
FAQs on 18 Months DA Arrears
Q1. What exactly are DA arrears?
They are the unpaid DA/DR amounts—from January 2020 to June 2021—that were frozen during COVID.
Q2. How much was at stake?
The freeze saved around ₹34,400 crore, used to manage economic fallout and relief measures.
Q3. Did the government ever promise to pay?
No. In both Lok Sabha (Aug 2025) and Rajya Sabha (Feb 2025), the government reaffirmed that the arrears are not feasible to pay.
Q4. Will regular DA continue to be paid?
Yes—DA continues as scheduled, with the next revision expected by the end of 2025.
Q5. Are pensioners included?
Absolutely. Both central government employees and pensioners are affected similarly by the frozen DA/DR.
References
- Financial Express – DA arrears of 18 months: Will govt employees and pensioners ever get them? Latest updates
- IGE Corner – Government clarifies: 18 months DA arrears not feasible
- Economic Times – Finance Ministry’s statement on pending DA arrears
- Lok Sabha Q&A Records – Unstarred Question No. 3638, answered on 11th August 2025 by Pankaj Chaudhary, Minister of State for Finance.
- Rajya Sabha Q&A Records – Unstarred Question No. 236, answered on 4th February 2025 regarding feasibility of DA arrears payment.