The long pending issue of 18 months Dearness Allowance and Dearness Relief arrears has once again come into focus after a renewed government response. Central government employees and pensioners whose DA and DR were frozen during the Covid 19 period continue to wait for clarity, as discussions resurface in Parliament and official replies outline the current stand. This update is crucial for lakhs of employees and retirees tracking every development related to DA arrears payment.
What Is the 18 Months DA Arrears Issue and Why It Matters
During the Covid 19 pandemic, the central government froze DA and DR hikes from January 2020 to June 2021 as part of fiscal consolidation measures. Although DA was later restored from July 2021 with revised rates, arrears for the frozen 18 months were never paid. This decision impacted the income of employees and pensioners at a time when inflation and household expenses were rising sharply.
The affected period includes three DA installments, and the cumulative amount varies based on basic pay or pension. Employee unions have consistently demanded release of these arrears, calling it a rightful payment rather than a benefit.
Latest Government Response on Frozen DA and DR
In its recent response, the government reiterated that the decision to freeze DA and DR during the pandemic was taken to manage the financial stress caused by Covid related expenditures. The official stand remains unchanged, stating that there is no current proposal under consideration to release the 18 months DA arrears.
The government also clarified that DA restoration from July 2021 was implemented prospectively, and the frozen amount was treated as a permanent sacrifice in the larger public interest. This response has disappointed employee associations but has also brought renewed attention to the issue across media and social platforms.
Time Period Covered Under DA Arrears Freeze
The DA and DR freeze applies to a specific duration when increments were announced but not paid. The period and installments are summarized below.
| DA Installment Period | Status |
|---|---|
| January 2020 to June 2020 | Frozen |
| July 2020 to December 2020 | Frozen |
| January 2021 to June 2021 | Frozen |
These three installments together form the 18 months DA arrears that employees and pensioners are demanding.
How Much DA Arrears Employees and Pensioners Could Have Received
The arrears amount differs depending on pay level and pension slab. For lower level employees, the pending amount could range in tens of thousands, while for senior officers and high pension brackets, it could cross two lakh rupees. Pensioners were equally affected, as DR is calculated on the basic pension in the same manner as DA.
The non payment of these arrears continues to impact long term financial planning for retirees and salaried employees alike.
Key Points from Employee Unions and Associations
Employee unions have maintained that DA is a compensation for inflation and not a discretionary allowance. They argue that since DA hikes were announced, withholding arrears is unfair and sets a wrong precedent. Associations have also suggested alternative payment options such as phased release or partial settlement to reduce the burden on the exchequer.
The major demands raised include
• Release of full 18 months DA and DR arrears
• Consideration of phased or installment based payment
• Separate relief for pensioners and family pensioners
• Formal dialogue between government and staff federations
Is There Any Possibility of DA Arrears Payment in Future
While the government has ruled out immediate payment, the issue remains alive due to continuous pressure from unions and political representatives. Any major change would depend on fiscal conditions, revenue growth, and policy priorities in upcoming budgets or pay related reforms.
Experts believe that if economic indicators remain strong and tax collections continue to improve, the government may revisit the demand in some form, though no official commitment has been made so far.
Impact on Central Government Employees and Pensioners
The continued denial of DA arrears has led to dissatisfaction among employees and pensioners, especially as inflation levels remain high. Many retirees depend heavily on pension and DR for monthly expenses, and the missed arrears represent a significant financial gap.
At the same time, the government maintains that DA rates are now aligned with inflation trends, and future hikes are being released regularly without delay.
Conclusion
The 18 months DA arrears issue remains unresolved, with the government maintaining its stance that payment is not feasible at present. Despite repeated demands and representations, central employees and pensioners will have to wait for any policy shift or fiscal relief announcement. Until then, the frozen DA and DR continue to be one of the most debated salary and pension related issues in recent years.
Disclaimer
This article is based on official statements and public information available at the time of writing and is for informational purposes only.