Many government employees are wondering whether they will receive the pending 18-month Dearness Allowance (DA) arrears.
During the Covid-19 pandemic, the central government had put on hold three installments of both Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners.
Why Were DA and DR Installments Stopped?
The government said that the DA and DR installments due in January 2020, July 2020, and January 2021 were paused due to the economic crisis caused by Covid-19.
With a drop in revenue and increased spending on emergency welfare schemes, the government decided to stop these payments temporarily.
What Are DA and DR?
Dearness Allowance (DA): Extra pay given to government employees to offset inflation.
Dearness Relief (DR): Similar benefit for pensioners to protect their income from rising costs.
What Did the Government Say in Parliament?
On August 11, 2025, MP Anand Bhadoria raised this issue in the Lok Sabha. In response, the government shared official details about the current financial position and the possibility of paying the arrears.
Is There Still Financial Pressure?
The MP asked if the government is still facing financial stress or is close to bankruptcy. The government clarified that this is not the case.
The fiscal deficit, which was 9.2% in 2020-21, has come down to 4.4% in the 2025-26 Budget Estimate. So, the country’s financial health has improved, though the after-effects of Covid-19 still linger.
Will Employees Get the 18 Months of Pending DA/DR?
The government has made it clear:
Even though the financial situation is better now, it is not possible to pay the 18 months of DA/DR arrears.
The economic strain from Covid-19 continued even after 2020-21, and the budget does not allow for releasing that pending amount.
What’s the Current Status?
Employees and pensioners are now receiving regular DA and DR installments.
However, the 18-month arrears from the Covid period will not be paid.
