18-Month DA Arrears: A New Hope or Just More Waiting for Central Govt Employees?
By Staff Reporter | New Delhi | Updated: Dec 30, 2025, 23:58 IST
As the clock ticks down on the 7th Pay Commission, one ghost continues to haunt the hallways of North Block: the 18-month Dearness Allowance (DA) arrears. With the 8th Pay Commission now officially on the horizon, over one crore central government employees and pensioners are asking if the “frozen” dues from the pandemic era will finally be cleared.
For the uninitiated, the government had suspended the release of three installments of DA and Dearness Relief (DR) between January 2020 and June 2021 to manage fiscal pressure during the COVID-19 lockdowns. While the increments were eventually restored, the arrears for that 18-month window remained locked in the government’s coffers—leaving a massive financial hole in the pockets of the workforce.
A Turning Tide? The Supreme Court’s Recent “Middle Path”
The latest buzz in the employee circles isn’t just speculation. Recent legal developments in late 2025 have sparked fresh hope. Rumors of a Supreme Court observation regarding a partial settlement of these arrears have been doing the rounds, suggesting a “middle path” where the government could release 25% to 50% of the pending amount as a one-time relief gesture.
Employee unions, led by the National Council (JCM), have intensified their pressure, arguing that since the economy has fully recovered and tax collections are at an all-time high, there is no longer a moral or fiscal justification for withholding these “rightful earnings.”
What’s at Stake? The Estimated Payout
The numbers are significant. For a mid-level employee, the 18-month arrears could range from ₹30,000 to ₹1,50,000 depending on their pay grade. For pensioners, this amount is often the difference between a comfortable retirement and a tight monthly budget.
| Pay Level | Estimated Arrears (Min) | Estimated Arrears (Max) |
|---|---|---|
| Level 1 (Entry) | ₹11,880 | ₹37,554 |
| Level 13 (High) | ₹1,23,100 | ₹2,15,900 |
The 8th CPC Connection
Insiders suggest that the 8th Pay Commission’s “Terms of Reference” might include a special provision to address these past liabilities. If the government decides to bundle the DA arrears with the initial payout of the 8th CPC in 2026, it could serve as a major “Masterstroke” to win over the trust of the central workforce.
The Bottom Line
Is the money coming tomorrow? Probably not. But for the first time in four years, the conversation has moved from “closed” to “under review.” As the 7th CPC ends tonight, the demand for these arrears has become the litmus test for the 8th Pay Commission’s commitment to employee welfare.