Dearness Allowance arrears payout: Govt clarifies status of 18-month DA backlog from 2021

The question asked whether the freeze was implemented due to economic disruption caused by COVID-19 to ease pressure on government finances.

The minister acknowledged in his response that the decision to halt three DA/DR installments that were due on January 1, 2020, July 1, 2020, and January 1, 2021, was made "in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances."

In response to the question regarding whether the Government has set a timeline for releasing the 18 months of pending DA and DR arrears, the minister stated that no specific timeline has been determined.

The Government explained that releasing the arrears was deemed unfeasible due to the continued financial strain caused by the COVID-19 pandemic, along with the substantial cost of implementing various welfare measures, which extended beyond the 2020–21 financial year.

On the question over the time by which the Government would release the arrears of 18 months DA/DR, the minister replied "The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible," the minister replied.

DA (Dearness Allowance) and DR (Dearness Relief) are types of cost-of-living adjustments paid by the Indian government to employees and pensioners.

Central and state government employees (including public sector employees) get DA. It is usually revised twice a year – in January and July.

Government pensioners (retired employees) are entitled to DR.