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DA Hike – Why Central Employees Will Not Receive 18-Month DA Arrears?

DA Hike: Approximately 1 crore central government employees and pensioners are eagerly awaiting the dearness allowance (DA) hike. This will be the last DA revision under the 7th Pay Commission, which is scheduled to end in December. The central government had suspended three instalments of dearness allowance and dearness relief (DR) for central employees during the coronavirus pandemic. In such a situation, the question arises whether the central employees and pensioners will get the outstanding arrears of these 18 months? According to news published in The Economic Times, the government informed Parliament that it had decided to suspend the payment of three instalments of 18 months, due on 1 January 2020, 1 July 2020, and 1 January 2021, during the COVID-19 pandemic. At that time, India's economy had deteriorated.

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Priyanka Singh

August 16, 2025 - 04:19 PM
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When the government was asked when the stopped DA and DR would be released?

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Responding to this, Minister of State for Finance Pankaj Chaudhary stated that the impact of the economic loss during the COVID-19 pandemic and the additional expenditure on welfare schemes continued beyond 2020-21. At present, payment of these outstanding instalments is not possible.

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The government has refused to pay 18 months' DA / DR of central employees and pensioners.

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The government announced a 2% DA hike in March this year, which took effect from January 2025.

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According to a report, if the current basic salary of an employee is Rs 50 thousand and DA is increased from the current 55% to 60%, then the salary can reach Rs 80 thousand.