Unfinished Business: Central Govt Employees and Pensioners Push for Overdue 18-Month DA/DR Arrears
Possible release of 18-month back pay allowance for central government employees and pensioners? Here's the latest information.
In the latest 63rd meeting of the National Council's Joint Consultative Mechanism (JCM), the ongoing saga of the 18-month DA/DR arrears that were put on hold during the Covid-19 pandemic resurfaced.
Hear Us Out: Central government employees and pensioners are still holding on to the leftover pain from the pandemic era—the withheld Dearness Allowance and Dearness Relief for a staggering 18 months.
This meeting, held at the Civil Services Officers Institute (CSOI), K.G. Marg, Delhi, was all about addressing the woes of central government employees, with the 18-month DA/DR arrears being one of the principal concerns.
The gathering was presided over by the Secretary, with senior leaders like Shivgopal Mishra and M. Raghavaiya leading the staff side.
Reiterating the Demand on DA Arrears
During the discussion, the staff side reaffirmed their old plea for the payment of DA/DR arrears for the 18-month period between March 2020 and June 2021. They stressed that both employees and pensioners deserve this relief given their relentless service during a tough time when the nation was in lockdown.
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Government's Stand on 18-month DA Arrears
On the other hand, the Finance Ministry has maintained its previous stance. Citing the worsening economic conditions due to the Covid-19 crisis and the additional burden of government welfare schemes, the Ministry stated that the payment of DA/DR arrears at the moment is not feasible.
Discussions on 8th Pay Commission
The 8th Central Pay Commission and its Terms of Reference were also up for debate. The staff side urged the government to swiftly appoint the chairman and members of the commission and to issue the Terms of Reference without delay.
While appointments for some members have been made, the rest of the process is still ongoing. Employees are looking forward to prompt implementation of the 8th Pay Commission recommendations, starting from January 1, 2026. Any delays should be made up with arrears, they suggested.
Worth a read: DA hike for July 2025: Anticipating a bigger boost in the next revision for central government employees and pensioners
Proposed Employee Insurance Scheme
Another critical issue under discussion was the Central Government Employees Group Insurance Scheme (CGEGIS). The Department of Expenditure has reportedly drafted a new proposal for this insurance scheme and plans to share it with the staff side soon.
Persistent Frustration
Although several matters were discussed, the lingering frustration over the 18-month arrears of DA/DR persisted. Employee organizations believe that the government should show compassion and grant the arrears to the employees, who truly deserved it for their wholehearted service.
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Present Status of 18-Month DA/DR Arrears
The continuous plea for the resolution of 18-month DA/DR arrears, frozen during the COVID-19 pandemic, remains unattended. These arrears encompass three installments of DA hikes between January 2020 and June 2021, which were temporarily halted as a part of fiscal measures during the pandemic.[2][4] Despite the resumption of DA payments from July 2021, the government has not yet compensated for the withheld period.[4]
Recent interactions such as the 63rd meeting of the Standing Committee of the National Council (NC-JCM), have observed the staff side reasserting their call for the release of these arrears.[1][2] Employee unions emphasize that these payments are not merely about monetary compensation but also about financial justice and acknowledging the service rendered during difficult times.[4]
Potential Developments
Government Position and Expectations
Thus far, there has been no official dedication or timetable from the government regarding the release of these arrears.[2] However, employee welfare schemes and economic factors suggest that the government might eventually address this issue to boost employee morale and stimulate economic influx.[3]
Role of the 8th Pay Commission
The recently approved 8th Central Pay Commission, slated to start from January 1, 2026, offers another possibility for potential relief. Employee unions express optimism that this commission may address the DA arrears issue, laying the foundation for a framework for compensation or adjustments for the frozen period.[5]
Future Announcements
Although there was false news suggesting a confirmed payout date, no official announcement has been made by the government regarding the release of these arrears.[3] The future prospects for central government employees and pensioners will hinge on whether the government modifies its stance on DA/DR arrears in response to ongoing pleas and economic considerations.
- The Central government employees and pensioners continue to advocate for the payment of the 18-month DA/DR arrears that were put on hold due to the pandemic, arguing that this financial relief is a deserved acknowledgment of their service during challenging times.
- Amidst discussions on various matters, the 63rd meeting of the National Council's Joint Consultative Mechanism (JCM) emphasized the persisting frustration over the 18-month arrears of DA/DR. The government's stance on this issue remains crucial in boosting employee morale and providing financial justice to those who served diligently during the pandemic.
