Central Employees eye 18 months DA Arrears after 8th Pay Commission Approval

In a major development for central government employees, the Union Cabinet’s recent approval of the 8th Pay Commission has rekindled hopes for the resolution of other pressing demands—most notably, the release of dearness allowance (DA) arrears frozen during the COVID-19 pandemic.

The 18-month DA arrears, withheld between January 2020 and June 2021, have been a bone of contention since the government decided to freeze three DA hikes, citing financial strain caused by the pandemic. The DA, typically revised biannually in January and July, serves as a critical cost-of-living adjustment for employees and pensioners.

Employees’ Demand Gains Momentum Ahead of Budget 2025

As the Union Budget 2025 approaches, the National Council Joint Consultative Machinery (NC JCM), representing central government employees, has intensified its advocacy for the release of these arrears. In a letter dated January 10, NC JCM Secretary Gopal Mishra urged Finance Minister Nirmala Sitharaman to address the issue.

“We have been demanding that the 18-month DA/DR arrears due to central government employees and pensioners, frozen during the COVID-19 pandemic period, be paid back, especially given the current satisfactory economic conditions,” Mishra wrote. He emphasized that the government’s actions should align with Supreme Court judgments safeguarding employee entitlements.

The NC JCM’s letter also called for the restoration of festival advances, improvements to CGHS facilities, and reducing the commuted pension restoration period from 15 years to 12.

Government’s Stance on DA Arrears

Despite persistent efforts from employee bodies and discussions in Parliament, the Centre has consistently cited economic constraints as the reason for withholding DA arrears. Union Minister of State for Finance Pankaj Chaudhary reiterated in the Rajya Sabha that the freeze on DA instalments—covering January 2020, July 2020, and January 2021—was essential to alleviate financial pressure during the pandemic.

The freeze saved the government ₹34,402.32 crore, which was redirected to manage pandemic-induced economic disruptions. However, employees argue that with economic conditions improving, the arrears should now be released.

A Long-Awaited Pay Panel

The NC JCM’s advocacy for the 8th Pay Commission has finally borne fruit with the Union Cabinet’s approval on January 16. The new pay panel is expected to address salary revisions and structural reforms in employee compensation, sparking optimism about the resolution of other long-pending demands.

What Lies Ahead?

Central government employees are keenly awaiting Finance Minister Sitharaman’s Budget 2025 announcement, hoping for a breakthrough on the DA arrears issue. While the government has remained firm on its decision thus far, employee bodies and opposition parliamentarians continue to push for reconsideration, citing fairness and economic stability.

As the debate over DA arrears rages on, the approval of the 8th Pay Commission signals a step forward in addressing employee grievances. Whether it marks the beginning of a broader resolution remains to be seen.