The long-pending demand for 18 months of Dearness Allowance (DA) and Dearness Relief (DR) arrears has once again come into focus. Central government employees and pensioners have been waiting for clarity on payments that were frozen during the COVID-19 period, but the latest government response has brought a decisive update that directly affects lakhs of beneficiaries.
What Are the 18 Months DA/DR Arrears
The DA and DR instalments for January 2020, July 2020, and January 2021 were frozen due to the financial stress caused by the pandemic. This resulted in 18 months of unpaid DA for employees and DR for pensioners, even though regular salaries and pensions continued.
Latest Government Response on DA Arrears
The central government has clearly stated in recent parliamentary replies that the frozen 18-month DA/DR arrears will not be paid. According to the Finance Ministry, releasing these arrears is not financially feasible, considering the extraordinary expenditure incurred during the pandemic years on healthcare, welfare schemes, and economic relief.
This position has been reiterated multiple times, leaving little scope for reversal in the current framework.
Why the Government Is Refusing Arrears Payment
The government maintains that the DA/DR freeze was a policy decision taken in national interest during an unprecedented crisis. Officials argue that while the economy has stabilized, releasing arrears retroactively would place a significant burden on public finances and affect fiscal discipline.
Current Status of DA and DR for Employees and Pensioners
While arrears remain frozen permanently, regular DA and DR hikes are continuing as usual. The government has resumed biannual revisions based on inflation data, ensuring that current salaries and pensions reflect cost-of-living adjustments.
Employees and pensioners are already receiving revised DA/DR rates announced after July 2021, but without any back payment for the frozen period.
Role of Employee Unions and Associations
Employee unions and pensioners’ bodies have repeatedly raised the demand for arrears through Joint Consultative Machinery (JCM) meetings and representations. Despite sustained pressure and renewed discussions, the government has not indicated any change in its official stance.
Does the 8th Pay Commission Change Anything
With the 8th Pay Commission now under discussion, many employees are hopeful that DA arrears might be reconsidered. However, government responses suggest that the Pay Commission will focus on future pay and pension restructuring, not retrospective DA/DR payments from the pandemic period.
Unless specifically recommended and approved, the frozen arrears are unlikely to be revived under the new commission.
DA Arrears Issue at a Glance
| Topic | Current Status |
|---|---|
| DA/DR Frozen Period | Jan 2020 to June 2021 |
| Total Pending Duration | 18 Months |
| Government Decision | Arrears will not be paid |
| Current DA/DR | Paid regularly after July 2021 |
| Impact of 8th Pay Commission | No assurance on arrears |
What This Means for Employees and Pensioners
For central government employees and pensioners, this means expectations of a lump-sum arrears payout should be tempered realistically. The focus going forward remains on future salary hikes, pension revisions, and DA increases, rather than compensation for the pandemic freeze.
One Quick Takeaway
The government has taken a final and firm stand that the 18-month DA/DR arrears frozen during COVID-19 will not be released, while regular DA and DR hikes will continue normally.
Conclusion: The DA arrears issue has reached a critical point where clarity has replaced uncertainty. Despite repeated demands, the government’s position remains unchanged, prioritizing fiscal stability over retrospective payouts. For employees and pensioners, attention now shifts to upcoming DA revisions and the recommendations of the 8th Pay Commission for future financial relief.
Disclaimer: This article is for informational purposes only and is based on official statements and parliamentary replies. Policies may change subject to government decisions. Readers are advised to follow official notifications for confirmed updates.
