Central government employees and pensioners across India have been eagerly waiting for the release of their 18-month Dearness Allowance (DA) and Dearness Relief (DR) arrears, which were withheld during the COVID-19 pandemic.
Recent developments indicate that the government may soon release these pending amounts, offering long-awaited financial relief to over one crore employees and retirees. While the decision is not final, discussions between the government and employee unions have gathered momentum, with expectations of a possible payout in late 2025 or early 2026.
Why Were DA and DR Payments Stopped?
During the peak of the COVID-19 pandemic in April 2020, the government announced a pause on three DA and DR instalments covering the period from January 2020 to June 2021.
The decision was taken to ease the financial burden on the exchequer, as the government redirected funds to pandemic management and relief measures.
- Amount saved: Around ₹34,402 crore
- Impact: Salary stagnation for employees and reduced income for pensioners during a time of high inflation
While the move was seen as a fiscal necessity, it left many employees struggling to manage household expenses amid rising costs.
Quick Summary
| Key Detail | Information |
|---|---|
| Arrears Period | January 2020 – June 2021 (18 months) |
| Reason for Withholding | COVID-19 economic relief measures |
| Estimated Cost to Government | ₹34,402 crore |
| Expected Payout Window | January–February 2026 (tentative) |
| Eligible Beneficiaries | Central government employees and pensioners |
| Estimated Payout Range | ₹11,880 – ₹2,18,200 (based on pay level) |
| Official Updates | Ministry of Finance |
Latest Updates on the DA Arrears Release
The matter resurfaced in June 2025, during the 63rd meeting of the National Council (Joint Consultative Machinery – JCM).
Key points from recent discussions:
- Employee unions reiterated their demand for immediate arrears release.
- Government sources hinted at a possible announcement by late 2025.
- If approved, the payout is expected in January or February 2026.
Estimated Payout Amounts by Pay Level
The arrears amount varies according to the basic salary and pay level of the employee. Below are estimated figures:
| Pay Level | Basic Salary Range | Estimated DA Arrears |
|---|---|---|
| Level-1 | ₹18,000 | ₹11,880 |
| Level-13 | ₹1,23,100 | ₹1,44,200 |
| Level-14 | ₹2,15,900 | ₹2,18,200 |
Example:
- An employee with a basic salary of ₹18,000 could receive ₹11,880.
- Higher-level officers in Level-14 could get over ₹2.18 lakh in arrears.
Government’s Stand on the Issue
The Ministry of Finance has maintained a cautious approach toward releasing the arrears, citing the large fiscal impact.
However, the financial outlook is improving:
- Fiscal deficit has reduced from 9.2% in 2020–21 to 4.4% in 2025–26 (Budget Estimate).
- If revenue growth continues, the government may be more open to releasing the arrears in early 2026.
Employee Unions’ Efforts
Leading employee representatives, such as Shiv Gopal Mishra of the National Council (JCM), have been actively lobbying for the release of arrears:
- Letters sent to the Prime Minister and Finance Ministry
- Media briefings to highlight the employees’ plight
- Reference to a Supreme Court ruling that delayed payments should include 6% interest
- Threats of peaceful protests if the payout is delayed further
Pensioners’ organisations like the Bharat Pensioners Samaj have also joined the demand, stressing that this is a matter of fairness rather than a mere financial transaction.
What Employees and Pensioners Should Do Now
While the final date is not confirmed, it is advisable to:
- Update Bank Details: Ensure your department has the correct account details to avoid payment delays.
- Monitor Official Announcements: Keep track of updates from the Ministry of Finance and Department of Personnel & Training (DoPT).
- Check Pension Accounts: Pensioners should verify that their accounts are active and linked properly.
- Stay Connected with Unions: Updates often come first through employee associations.
Possible Timeline for Payment
Based on ongoing discussions:
- Late 2025: Final government decision likely
- January–February 2026: Tentative payout period
- Single Instalment Payment: Expected to be credited directly to beneficiaries’ accounts
Frequently Asked Questions (FAQs)
Q1: What period does the DA arrears cover?
A: January 2020 to June 2021.
Q2: Who is eligible for the arrears?
A: All central government employees and pensioners eligible for DA/DR during the arrears period.
Q3: How much can employees expect to receive?
A: Between ₹11,880 and ₹2,18,200, depending on pay level and basic salary.
Q4: When will the arrears be paid?
A: Tentatively in January–February 2026, subject to government approval.
Q5: Will interest be paid on the arrears?
A: Unions are demanding 6% interest based on Supreme Court precedent, but the government has not confirmed this.
Conclusion
The potential release of 18-month DA and DR arrears would be a historic payout for central government employees and pensioners, offering long-overdue relief after years of financial waiting.
While the government’s fiscal concerns remain a hurdle, improving economic indicators and continuous pressure from unions make the prospects brighter for 2026.
For now, all eyes remain on the official announcement, which could come in late 2025.
For More Information Click HERE
