For more than five years, over one crore central government employees and pensioners had been eagerly awaiting the release of dearness allowance (DA) arrears frozen during the COVID-19 pandemic. That anticipation, however, has now come to an end. Recent developments indicate that the DA arrears for the 18-month freeze period from January 2020 to June 2021 will never be paid, with even staff unions withdrawing their long-standing demand.
Why Was DA Frozen During COVID-19?
In March 2020, the COVID-19 pandemic caused an unprecedented economic slowdown across India. In response, the government decided to suspend DA and Dearness Relief (DR) hikes for central government employees and pensioners.
The freeze, which lasted 18 months, was primarily justified on fiscal grounds. According to the Finance Ministry, the government needed to divert resources urgently to manage the health crisis, strengthen medical infrastructure, and support vulnerable sectors of the economy. On multiple occasions in Parliament, the Ministry clarified that the withheld arrears would not be paid, framing the freeze as a necessary, crisis-driven decision.
Employees’ Struggle for DA Arrears
Despite these explanations, employees and pensioners continued to press for the release of the arrears:
- Staff unions and federations submitted multiple representations and held meetings demanding the restoration of DA arrears.
- Employees argued that the Indian economy had sufficiently recovered, and therefore, the arrears should be paid as a matter of entitlement.
- The government, however, maintained that the freeze decision was final and non-negotiable.
The Turning Point: Unions Withdraw Their Demand
The issue reached a definitive conclusion during a recent meeting between Union Minister Jitendra Singh and a delegation from the Government Employees National Confederation (GENC), the apex body of industrial federations linked to the Bharatiya Mazdoor Sangh (BMS).
Although DA arrears were initially included on the agenda, the delegation voluntarily withdrew the demand before discussions began. This unprecedented step signals that even the unions have now accepted the government’s position, effectively closing the chapter on this long-standing issue.
Remaining Employee Concerns
While DA arrears are no longer on the table, employee unions continue to push for several reforms, including:
- Restoration of commuted pension after 12 years instead of 15 years.
- A 5% increase in the compassionate appointment quota.
- Abolition of the National Pension System (NPS) with a return to the Old Pension Scheme (OPS).
- Timely constitution of the 8th Pay Commission.
- Reduction in the residency period required for promotions.
What This Means for Employees and Pensioners
With the formal withdrawal of demands by unions, it is now almost certain that DA arrears for the January 2020–June 2021 period will not be paid. Employees and pensioners will have to accept the financial loss from that period as final.
The government is unlikely to revisit the issue, especially since all major stakeholders now consider it resolved. Moving forward, the focus for employees will shift to securing better pay revisions, improved pensions, and enhanced career progression through the 8th Pay Commission and other policy measures.
The pandemic-era DA freeze was one of the most challenging periods for central government employees and pensioners. While hopes of recovering the lost arrears have been dashed, the ongoing fight now centers on strengthening future benefits and ensuring fair compensation structures in the years ahead.
