18-Month DA Arrears – In a significant update for lakhs of central government employees, the long-pending 18-month Dearness Allowance (DA) arrears are set to be released soon. This long-awaited decision is expected to bring substantial financial relief to employees and pensioners who have been eagerly anticipating this payout since the COVID-19 freeze. The government had withheld DA hikes between January 2020 and June 2021 due to pandemic-related fiscal stress. With the economy stabilizing and consistent demands from employee unions, the Centre is now moving toward clearing the arrears. Here’s everything you need to know about the DA arrears payment, expected date, beneficiary details, and amount calculation.
What Are DA Arrears and Why Were They Delayed?
The DA arrears refer to the unpaid Dearness Allowance hikes that were due between January 2020 and June 2021. These hikes were frozen by the government as a temporary measure during the COVID-19 pandemic to manage fiscal pressure. Although DA revisions resumed later, the arrears for this 18-month period were never paid, leading to continued demands from employees and pensioners.
- Due to the COVID-19 pandemic, the Central Government had announced a freeze on DA increases from January 2020 to June 2021.
- During this period, three hikes were scheduled — January 2020 (4%), July 2020 (3%), and January 2021 (4%).
- Though regular hikes resumed from July 2021 onwards, arrears for these 18 months were not paid.
- Employee unions and pensioner bodies have consistently demanded the release of these arrears, highlighting the impact on household finances.
Government’s Latest Stand on DA Arrears Payment
The government has recently shown positive intent towards clearing the long-pending 18-month DA arrears. As per sources, the Finance Ministry is actively reviewing proposals and consulting with staff associations to finalize the payout structure. A one-time lump sum disbursement is being considered, with an official announcement expected soon.
According to recent media reports and sources close to the Finance Ministry:
- The Centre is considering releasing the 18-month DA arrears in a one-time lump sum.
- A tentative disbursement window between July and September 2025 is under consideration.
- Employees may receive arrears depending on their pay matrix, pay level, and grade pay.
Finance Ministry officials are in active consultation with staff associations to finalize the payment structure. A final notification is expected soon.
How Much DA Arrears Will You Get?
The total DA arrears amount will vary based on the employee’s basic pay and grade. Here’s an estimate of arrears likely to be received by employees at different levels.
Tentative DA Arrears Table (Jan 2020 – June 2021)
| Pay Level | Basic Pay (Approx) | Jan 2020 (4%) | Jul 2020 (3%) | Jan 2021 (4%) | Total Arrear (18 Months) |
|---|---|---|---|---|---|
| Level 1 | ₹18,000 | ₹720 | ₹540 | ₹720 | ₹29,160 |
| Level 3 | ₹21,700 | ₹868 | ₹651 | ₹868 | ₹35,142 |
| Level 5 | ₹29,200 | ₹1,168 | ₹876 | ₹1,168 | ₹47,664 |
| Level 7 | ₹44,900 | ₹1,796 | ₹1,347 | ₹1,796 | ₹73,656 |
| Level 10 | ₹56,100 | ₹2,244 | ₹1,683 | ₹2,244 | ₹92,436 |
| Level 12 | ₹78,800 | ₹3,152 | ₹2,364 | ₹3,152 | ₹1,29,888 |
| Level 13 | ₹1,23,100 | ₹4,924 | ₹3,693 | ₹4,924 | ₹2,03,076 |
| Level 14 | ₹1,44,200 | ₹5,768 | ₹4,326 | ₹5,768 | ₹2,38,992 |
Who Will Benefit from the DA Arrears?
The following categories of beneficiaries are expected to receive the 18-month arrears:
- Central Government Employees under 7th Pay Commission
- Central Government Pensioners
- Family Pensioners
- Employees of autonomous bodies and PSUs following central pay structure
This payment will be a one-time boost to employee and pensioner finances, especially for lower-grade employees who were most impacted during the pandemic.
Expected Payment Timeline and Procedure
As per reports, the following schedule is being discussed:
- July 2025: Formal notification regarding payment.
- August – September 2025: Disbursement of arrears via salary or pension accounts.
- Amounts will be credited along with regular monthly payments.
- Employees need not apply separately if they were in service during Jan 2020 to June 2021.
The government may also provide a breakup of the payment through a circular issued to all departments.
Employee Union Reaction and Demands
Multiple staff associations including the National Council (JCM) have:
- Repeatedly written to the Finance Ministry urging the release of DA arrears.
- Called for interest on the delayed payment.
- Warned of protests if demands are not met before the upcoming fiscal year.
With the upcoming budget and political considerations in play, the government appears inclined to announce the release before the festive season.
Impact on Employees and the Economy
The payout of the pending DA arrears will have both micro and macro-level impact:
- Employee Benefit: Major relief, especially for those at lower levels.
- Boost to Demand: Higher disposable income may push consumption ahead of festivals.
- Fiscal Burden: Estimated total payout could cross ₹30,000 crore.
Despite the fiscal cost, this step could bolster employee morale and stimulate economic activity at the grassroots level.
The long wait for 18-month DA arrears might finally be over. While an official notification is still awaited, all signs point toward a significant announcement soon. Central employees and pensioners should keep a close watch on Finance Ministry updates and prepare for a welcome windfall in the coming months.
Frequently Asked Questions (FAQs)
Q1. What is the 18-month DA arrear issue?
The DA arrears pertain to the period from January 2020 to June 2021, during which DA hikes were frozen due to COVID-19. The government resumed DA hikes later but has yet to pay arrears for this period.
Q2. Who is eligible for the DA arrears payment?
All central government employees, pensioners, and family pensioners under the 7th Pay Commission who were in service between January 2020 and June 2021 are eligible.
Q3. When will the arrears be paid?
The government is expected to release the payment between July and September 2025, with a final date to be announced via an official notification.
Q4. Do I need to apply to receive my arrears?
No, employees and pensioners do not need to apply separately. The arrears will be directly credited to their registered salary or pension accounts.
Q5. How much money will I get as DA arrears?
The exact amount will depend on your basic pay level and position. A Level 1 employee may get around ₹29,000, while senior-level officers could receive over ₹2 lakh in arrears.