Central government workers have been waiting for a long time to get their dearness allowance arrears that were stopped during the Covid time. Many hoped for good news, but the latest word from the finance ministry is not what they wanted. In August 2025, the government made it clear that these arrears for 18 months will not be given out. This affects lakhs of employees and pensioners who were counting on this extra money to help with rising prices. The decision has left many unhappy, but the government has its reasons tied to money problems from the pandemic.
What is Dearness Allowance and Why Arrears?
Dearness allowance, or DA, is like an extra part of salary that the government gives to its workers and pensioners to fight against high costs of living. It changes every six months based on how prices go up. During the Covid-19 days, from early 2020 to mid-2021, the government put a stop on three DA increases. This freeze lasted 18 months, meaning no extra DA was paid for that time. Even after things got better, the missed payments, called arrears, were not given back. Employees thought maybe with new pay rules or better economy, they would get it now, but that hope is gone.
Here is a small table showing the frozen DA instalments:
| Due Date | Instalment Details |
|---|---|
| January 1, 2020 | DA increase frozen |
| July 1, 2020 | Next DA hike not paid |
| January 1, 2021 | Final frozen instalment |
This table lists the three times when DA was supposed to rise but was held back due to the crisis.
Government’s Clear No and Reasons
The finance ministry said straight out that paying these arrears is not possible. Minister Pankaj Chaudhary told the Lok Sabha that the Covid hit the country’s money hard, and the government had to spend a lot on help programs for people. Even though the budget gap has come down from over 9 percent in 2020-21 to about 4 percent now, there is still no space for this old payment. The freeze was to save money during tough times, and now they say the effects are still there, so no arrears will come. This answer came after MPs asked questions about it in parliament.
How It Affects Workers and Pensioners
For central government staff, this means no extra cash boost they were hoping for. Many families depend on DA to handle daily costs like food, rent, and school fees. Pensioners, who are older and need money for health, feel it even more. Groups of employees have sent letters and asked for the arrears, but the government sticks to its stand. Some say this is unfair because the economy is better now, and GST collections are high. But the ministry says all that money is needed for other things like welfare schemes.
What Happens Next?
With the 8th Pay Commission talks starting, some thought the arrears might be part of it, but the government said no to that too. Workers can still get regular DA hikes, like the one expected soon, but the old 18 months are off the table. Employees are advised to check official sites for any new changes, though it looks like this decision is final. This has sparked talks among unions, who may push harder in future. For now, central govt staff have to plan without this money.
In the end, while many waited for happy news, the reality is different. The government focuses on future stability over past dues. Central employees keep serving the country, but this update reminds them of the tough choices made in hard times. Total words: 578.