Dearness Allowance payment: Govt will not release DA, DR arrears of 18 months, says Finance Ministry

Responding to a query in the Lok Sabha on Monday (February 3, 2025), Pankaj Chaudhary, Minister of State in the Ministry of Finance, said the three installments of DA and DR were frozen during the pandemic to ease pressure on Government finances.

"The decision to freeze three installments of Dearness Allowance (DA)/Dearness Relief (DR) to Central Government employees/pensioners due from 01.01.2020, 01.07.2020 & 01.01.2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finance," Chaudhary said.

When asked about the release of arrears, Chaudhary simply replied, “No.”

The minister explained the reasons for not releasing the arrears: "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."

Chaudhary reiterated the decision on non-payment of the DA/DR arrears in a written reply to a similar query in the Rajya Sabha.

"The decision to freeze three installments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees/ pensioners due from 01.01.2020, 01.07.2020 & 01.01,2021 was taken in the context of COVID-19, which • caused economic disruption, so as to ease pressure on Government finances. 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," Chaudhary said in Rajya Sabha.

Current rate of DA, DR

The rate of DA and DR currently provided to central government employees and pensions is 53% as per the recommendations of the 7th Pay Commission.