Frozen DA Arrears: What Lies Ahead for the Central Government Employees?

Central government employees and pensioners are once again demanding the release of their long-pending DA and DR arrears, which were frozen during the COVID-19 pandemic. The issue was recently raised at the 63rd meeting of the Standing Committee of the National Council of the Joint Consultative Machinery (NC-JCM) held on April 23, 2025.

Central Government Employees DA Freeze Background

The arrears in question relate to three scheduled hikes in DA and DR between January 2020 and June 2021. These adjustments, which are typically made biannually in January and July based on changes in the Consumer Price Index (CPI), were put on hold during the pandemic. The freeze was implemented as part of broader fiscal tightening efforts during a time of economic crisis.

The halt affected approximately 50 lakh government employees and 60 lakh pensioners, significantly impacting their incomes. Although the government resumed DA payments starting July 2021, it has so far not compensated for the frozen period.

Latest Developments and Union Response

During the recent NC-JCM meeting, employee representatives once again highlighted the need to release the frozen arrears. They emphasised that the pending dues are not just about monetary compensation but also about financial fairness, especially in the context of rising living expenses.

Earlier this year, ahead of the Union Budget 2025, staff unions had also written to Finance Minister Nirmala Sitharaman, urging reconsideration of the government’s position on the matter.

Government’s Position

Despite repeated demands, the government maintains that releasing the withheld DA/DR arrears is not feasible. Officials have pointed to the financial strain caused by the pandemic and the need to fund various welfare programs during that period. 

They also argue that the impact of the COVID-19 crisis extended beyond FY 2020-21, influencing fiscal priorities even in later years.

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Conclusion

While central government employees and pensioners continue to advocate for the restoration of their frozen DA and DR arrears, the government’s stance remains firm. Whether this long-standing issue sees a resolution in the near future will depend on political will and fiscal headroom.

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