DA Arrears Payment Update 2025: 18 Months Of Dues To Be Settled For Government Employees

On: December 14, 2025 5:44 PM
DA Arrears Payment 18 Months Update

KEY HIGHLIGHTS

  • Government has clarified its stand on the 18 months DA/DR arrears freeze.
  • Finance Ministry confirmed arrears from Jan 2020 to Jun 2021 will not be paid.
  • Decision linked to COVID impact, even as talks on the 8th Pay Commission continue.

If you are a central government employee or pensioner, this update matters.
There has been fresh discussion around the long-pending 18 months DA arrears.

With news floating around about the 8th Pay Commission, many were hoping for relief.
But the government has now made its position clear in Parliament.

DA Arrears Payment  18 Months Update

TopicLatest Status
DA/DR Arrears PeriodJan 2020 – Jun 2021
Total Instalments Withheld3 instalments
Government DecisionArrears will not be released
Current DA Rate (7th CPC)55% of Basic Pay
8th Pay CommissionApproved in principle, panel not formed

What Question Was Raised in Parliament?

A direct question was asked in Parliament.
Members wanted to know if the DA/DR freeze during COVID would be reviewed now.

The logic was simple.
India’s economy has recovered, collections are better, and inflation is high.

So, would the government reconsider paying the withheld DA arrears?

Government’s Clear Response on DA Freeze

Minister of State for Finance Pankaj Chaudhary responded clearly.
He said the financial impact of COVID did not end in just one year.

According to him, welfare spending and economic pressure continued beyond FY 2020–21.
Because of this, paying DA/DR arrears was not considered feasible.

This applies to both serving employees and pensioners.

Why Were 3 DA Instalments Stopped?

The government explained the background once again.
Three DA/DR instalments were stopped to ease pressure on public finances.

These instalments were due from:

  • January 1, 2020
  • July 1, 2020
  • January 1, 2021

The decision was taken when COVID disrupted revenue and spending priorities.

DA and DR: Why They Matter to You

Dearness Allowance helps employees handle rising prices.
For pensioners, the same support comes as Dearness Relief.

From ration bills to medicine costs at the local kirana store, DA matters.
That’s why the arrears issue continues to worry many families.

What’s the Status of the 8th Pay Commission?

The clarification comes as talks on the 8th Pay Commission pick up pace.
The Union Cabinet has approved it in principle.

However, the commission is not yet formed.
Once set up, it will consult stakeholders and submit a report.

This process usually takes more than a year.

Important Point About DA Under New Pay Commission

There’s one thing many people forget.
When a new Pay Commission is implemented, DA is reset to zero.

This is standard practice.
Right now, under the 7th Pay Commission, DA stands at 55%.

Final Takeaway for Employees and Pensioners

To put it simply, the government has shut the door on 18 months DA arrears.
The focus now shifts to when and how the 8th Pay Commission moves forward.

For now, it’s best to plan finances without expecting DA arrear payouts.
We’ll keep an eye on every update that affects your monthly budget.

Source Article : livehindustan.com

Lucas

"Hello! I am LUCAS, a Singapore-based business enthusiast and the lead editor at SingaporeEnterpriseAssociation.com. With a keen eye on the local economy, I track the latest government announcements, budget payouts, and SME grants to keep you updated. My goal is to help Singaporeans navigate the complexities of starting a business and maximizing public support schemes like CDC vouchers and Assurance Packages."

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