Ahead of the 8th Pay Commission, central employees and pensioners face a setback! The government has declared a 'no' on DA-DR arrears from the Covid period.

News Topical, Digital Desk : Millions of employees and pensioners have been awaiting their dearness allowance (DA) and dearness relief (DR) arrears, which were withheld during the COVID-19 pandemic. DA and DR were not paid for 18 months during the COVID-19 pandemic. The Finance Ministry has now issued a new statement on this matter. Regarding the pending DA/DR arrears for central government employees and pensioners, the Finance Ministry has clarified that payment is currently not possible.

Disappointment again

The Ministry of Finance has once again refused to release withheld DA/DR arrears, citing the financial impact of COVID-19. Despite six years of persistent struggles by employee unions, the government has rejected them each time, leaving millions of employees and pensioners disappointed.

Why were DA-DR installments stopped?

A letter dated April 15, 2026, issued by the Department of Expenditure, Ministry of Finance, stated that during the COVID-19 pandemic, the government had decided to freeze three installments of DA/DR to ease the economic pressure. These installments were to be implemented from January 1, 2020, July 1, 2020, and January 1, 2021.

In its response, the ministry clarified that the pandemic had severely impacted the country's economy at the time. The government had to incur significant expenditures on health and welfare schemes, which increased pressure on the fiscal situation. Therefore, these DA/DR installments were withheld.

Demand for arrears citing SC decision

The letter also stated that the economic impact of the pandemic was not limited to a single year; its effects continued beyond the 2020-21 fiscal year. Therefore, it was deemed impractical for the government to pay the arrears for these pending installments.
This response was given in response to an application filed by the Defense Recognized Association, which, citing a Supreme Court decision, demanded the release of the arrears.

No relief expected at the moment

This stance by the government clearly indicates that central government employees and pensioners are unlikely to receive any relief regarding DA/DR arrears at this time. However, this issue has been under discussion for a long time and has been continuously demanded by employee organizations.

This decision will directly impact millions of central government employees and pensioners who have been awaiting payment of these arrears. Currently, the government has rejected this demand, citing financial difficulties.

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