Since last year, employees and pensioners from the central government have been appealing for a solution to their unpaid Dearness Allowance (DA) since a long time. During the time COVID-19 was at its highest, these arrears were held in place and have since turned into a main concern for employees unions. Still, in June 2025, the issue hasn’t been solved, even though the situation has become especially tense following the new 8th Pay Commission.
The Origin of the Arrears Dispute
Three hikes of DA and DR scheduled during the pandemic were suspended by the government to cope with financial difficulties. The DA was restored from July 2021, but no attempt was made to hand out the backpay for the previous 18 months. Because of this decision, more than 1 crore central government employees and pensioners were affected and many people kept asking for compensation.
Government’s Current Stand
Even under pressure, the government says it is not able to afford paying out the arrears. As they put it, economic challenges from the pandemic, along with having to fund various welfare programs, are the main reasons for not paying back the dues. Even though inflation keeps increasing, there is no official announcement or schedule for releasing the household and business loans.
Employee Unions Intensify Pressure
Government officials brought up the issue during the National Council (JCM) meeting on April 2025. They stated that DA is officially a part of your salary and not something given out at the boss’s discretion. They bring up the point that withholding arrears makes financial treatment unfair and lowers the staff’s trust in the government.
The Role of the 8th Pay Commission
In January 2025, the government gave their go-ahead to the 8th Pay Commission, and they plan to put it into effect from January 1, 2026. Nevertheless, the Terms of Reference (ToR) are still not finished, so no appointments have happened. Representatives of employees are recommending the government to make sure the issue of DA arrears is addressed by the Commission, either by adjusting the past or compensating those affected.
Regional Developments Offer a Glimmer
Even though the central government stays strong, certain regions have introduced steps. The government of Jammu and Kashmir just increased DA by 2% and has pledged to give the back payments, due from January to May 2025, in June. Even though not connected to the 18-month freeze, these actions suggest that leaders are now considering employee issues much more, depending on where they might be in the organization.
Final Thoughts
It is still unclear what will happen to the 18-month DA arrears as June 2025 takes place. Since the 8th Pay Commission is under way, employees and pensioners are still bothered by the absence of clear guidance and official responses. As no clear decision has been made, the arrears prove that both economic recovery and giving justice are still on-going problems even after the pandemic.
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