18-Month DA Arrears: If you are a central government employee, this news may be of interest to you. Various organisations are presenting their demands to the 8th Pay Commission, including a request for the 18 months of Dearness Allowance (DA) arrears that were withheld during the COVID-19 pandemic. These organisations are hopeful that the government will make a decision on this matter.
Update on 18-Month DA/DR Arrears:
Organisations are demanding the release of the outstanding 18 months of DA/DR arrears, as the government had frozen DA hikes for both halves of 2020. However, the Finance Department has repeatedly issued clear refusals regarding the matter. In response to parliamentary questions, the central government clarified that the three DA/DR installments due in January 2020, July 2020, and January 2021 were withheld due to the financial strain caused by the COVID-19 pandemic. The government further explained that, given the extraordinary financial circumstances arising from the pandemic, it did not deem it appropriate to pay the DA/DR arrears.
8th Pay Commission Update
Retired employees and pensioners in Uttar Pradesh have staged protests and submitted a 12-point list of demands to the Prime Minister and UP Chief Minister Yogi Adityanath. A key demand is that employees retiring before January 1, 2026, should also be included under the 8th Pay Commission, ensuring there is no discrimination against any category of employees.
Additionally, they have demanded a revision of pensions for retirees, the restoration of the Old Pension Scheme, and tax exemptions. Additionally, they have proposed increasing the pension of pensioners by 5 per cent every five years upon reaching the age of 65. Furthermore, the deduction resulting from pension commutation should be discontinued after 10 years.
There is also a demand for the payment of the withheld 18-month DA/DR arrears. Employee organisations have further demanded that the Dearness Allowance (DA) component exceeding 50 per cent be merged with the basic pension. Relief measures have also been sought for employees, pensioners, and teachers regarding the delay in implementing the 8th Pay Commission.
What decision will the panel make?
Details regarding the outcome will only become available once the 8th Pay Commission panel submits its report to the government. This is a three-member panel chaired by Justice Ranjana Prakash Desai. It was constituted on November 3, 2025, and there is an expectation that the panel will submit its report within 18 months. The report is likely to be submitted by May or June of next year.