DA Arrear Alert : The wait is finally seeing light at the end of the tunnel for central government employees. The Centre has officially responded regarding the much-discussed 18-month DA arrears that were frozen during the COVID-19 pandemic. In a recent written reply in Parliament, the government has provided key clarifications that are vital for over 50 lakh central government employees and more than 65 lakh pensioners. Here’s everything you need to know.
What Are DA Arrears and Why Were They Frozen?
Dearness Allowance (DA) is a cost of living adjustment allowance paid to government employees and pensioners. It helps them cope with inflation and rising prices. However, during the COVID-19 pandemic, the central government decided to freeze three installments of DA to manage the economic burden on the exchequer.
The Frozen DA Period:
- January 2020
- July 2020
- January 2021
These 18 months of arrears are at the center of discussion and demands for compensation have been consistently raised by employee unions and political parties.
Government’s Written Reply : What Has Been Said?
In a much-anticipated response in the Parliament, the Ministry of Finance addressed the issue directly. Here are the key highlights of the official statement:
- The arrears for the period of January 2020 to June 2021 will not be paid as per the current policy.
- The decision was taken due to the financial constraints faced by the government during the pandemic.
- However, regular DA hikes resumed from July 2021 onwards and have been paid timely since.
- The cumulative financial impact of DA and DR (Dearness Relief) for this period would have been approximately Rs 34,402.32 crore.
Current DA Status in 2025
Here’s how the DA has evolved since the freeze was lifted:
| Period | DA Percentage | Announcement Month | Effective From | Remarks |
|---|---|---|---|---|
| July 2021 | 28% | July 2021 | July 2021 | Included 3 pending hikes |
| January 2022 | 31% | March 2022 | January 2022 | 3% hike announced |
| July 2022 | 34% | September 2022 | July 2022 | Inflation-based adjustment |
| January 2023 | 38% | March 2023 | January 2023 | Regular increment |
| July 2023 | 42% | September 2023 | July 2023 | Hike continues |
| January 2024 | 46% | March 2024 | January 2024 | 4% increase |
| July 2024 | 50% | Expected Soon | July 2024 | Awaiting cabinet approval |
| January 2025 | 54% (Expected) | To be announced | January 2025 | Based on AICPI projections |
Employees’ Demands: What Are the Unions Saying?
Despite the government’s stand, employees and pensioners’ associations are not ready to give up. Their demands include:
- Payment of the 18-month arrears in a phased manner.
- At least a one-time compensation or ex-gratia payment.
- Government should acknowledge the sacrifice made by employees during the pandemic.
- Discussions and dialogues should be opened between employee unions and the Finance Ministry.
Major Unions Involved:
- National Council (JCM)
- All India Defence Employees Federation (AIDEF)
- Confederation of Central Government Employees and Workers
Financial Impact and Government’s Concern
The major reason behind the denial of arrears is the huge financial impact on the central budget. As per the Ministry, here’s the approximate burden:
| Component | Estimated Cost (Rs in Crore) |
|---|---|
| Central Government Employees | 12,510.04 |
| Pensioners | 12,627.90 |
| Armed Forces Personnel | 9,264.38 |
| Total | 34,402.32 |
This cost was deemed unsustainable during the pandemic and is still considered a huge load given the government’s current focus on infrastructure and welfare spending.
Legal and Political Push for Arrears
Many MPs across party lines have raised the issue in Parliament, citing fairness and justice. Additionally, RTIs have been filed, and court cases are also being discussed to pressurize the government.
EPS-95 Pensioners in India to Get ₹7,500 + DA Hike – 78 Lakh Beneficiaries, Check Payment Dates
Key Developments:
- Written questions in Rajya Sabha and Lok Sabha
- RTI queries demanding transparency in DA policy
- PILs and legal consultations in various high courts
What Employees Should Know Going Forward
While the current response from the government is a no for DA arrears, employees are advised to stay updated and continue raising their voices through legitimate channels.
Suggestions for Employees:
- Stay connected with your union representatives.
- Track parliamentary sessions for updates.
- File RTIs for better accountability.
- Engage in peaceful, democratic protests or petitions.
The central government’s recent clarification has brought both relief and disappointment. While the regular DA hikes are back on track, the hope for the long-pending 18-month arrears continues to hang in the balance. It’s clear that the matter is not just financial, but also emotional and moral for millions of employees who served diligently through the pandemic. Whether or not the government revisits its decision remains to be seen, but the conversation is far from over.
