KEY HIGHLIGHTS
- 18-month COVID-era DA arrears remain unpaid even in 2025.
- Government saved ₹34,402 crore, but payout is ruled out.
- Focus now shifts to the 8th Pay Commission (2026).
Lakhs of central government employees and pensioners still check their bank balance every month, hoping the frozen COVID-era DA arrears finally show up.
From government offices to retirement homes, the question hasn’t died.
But as 2025 heads towards the finish line, the government’s answer remains the same — no payout.
Why DA and DR Were Frozen During COVID
Back in the peak COVID months, the Centre froze DA and DR for three instalments.
These were due on 1 January 2020, 1 July 2020, and 1 January 2021.
The reason was simple — protect public finances during an economic shock.
DA hikes restarted from July 2021, but the missed 18 months were never cleared.
| Item | Details |
|---|---|
| Period frozen | Jan 2020 – Jun 2021 |
| Total instalments | 3 |
| Government savings | ₹34,402 crore |
| Arrears paid? | No |
8th Pay Commission news, DA arrears latest update, central government employees salary, government pensioners DA, pay commission salary hike, DA merger with basic pay, India government salary revision
Unions Keep Raising the Issue
Employee unions, including the National Council of JCM, have not stayed silent.
Their stand is clear.
They believe employees gave up their dues during a crisis and deserve repayment now.
In 2025, the issue was raised multiple times in Lok Sabha and Rajya Sabha.
Opposition leaders pointed to rising GST collections while arrears remain unpaid.
Government’s Clear Position in 2025
As of December 2025, the Finance Ministry has drawn a firm line.
Minister of State for Finance Pankaj Chaudhary told Parliament that releasing DA arrears is “not feasible”.
The reason given is the lasting fiscal pressure from the 2020–21 pandemic period.
Even though the fiscal deficit has narrowed to around 4.4%, the Centre has ruled out:
- Lump sum payment
- Installment-based payment
- Any interest on arrears
In short, the freeze is treated as final.
How Much Money Is Involved for Employees
If arrears were ever released, the amounts would be meaningful for families.
Based on the frozen hikes (3% + 4% + 4%), here’s a broad estimate:
| Pay Level | Basic Pay Example | Estimated 18-Month Arrears |
|---|---|---|
| Level 1 | ₹18,000 | ₹20,000 – ₹30,000 |
| Level 6 | ₹56,100 | ₹60,000 – ₹80,000 |
| Level 10 | ₹1,00,000 | ₹1,00,000 – ₹1,50,000 |
| Level 14 | ₹2,18,200 | ₹2,50,000 – ₹3,50,000 |
Attention Shifts to the 8th Pay Commission
Over time, unions appear to be lowering the priority of DA arrears.
The spotlight is now firmly on the 8th Pay Commission, expected around 2026.
There is hope of better pay structures and possible DA merger with basic pay.
Meanwhile, regular DA hikes continue.
The current DA level of around 53–55% is still helping employees manage inflation.
The Bottom Line
As things stand in 2025, the 18-month DA arrears are unlikely to be paid.
For employees and pensioners, future gains now depend more on what the 8th Pay Commission brings than on past dues.
Join WhatsApp