7th Pay Commission: 18 Months DA Arrears Frozen During COVID-19, Finance Ministry Issues Update
7th Pay Commission Latest Update: Central government employees anticipating the official approval for 18 months of pending Dearness Allowance (DA) arrears under the 7th Pay Commission should be aware of the latest update from the Finance Ministry on this issue.
7th Pay Commission Latest News Update
DA, DR Arrears During COVID-19
With the cabinet approving the 8th Pay Commission, central employees are demanding payment of 18 months’ frozen DA, which was halted from January 2020 to June 2021.
18-Months Frozen DA, DR Raised in Parliament
The frozen DA issue has been repeatedly discussed in Parliament. MP Anand Bhadauria raised a question on 11 August 2025 regarding DA arrears for COVID-affected employees.
Reason for Freezing DA/DR
Bhadauria asked whether the freeze of DA/DR was due to economic strain caused by the pandemic and if government finances are still under pressure.
Timeline of Arrears
He requested details on why the government failed to restore fiscal strength since 2014 and sought the timeline for releasing the 18-month DA/DR arrears.
Finance Ministry Response
Finance Minister of State Pankaj Chaudhary explained that the DA/DR freeze from 2020–2021 was a response to COVID-19 economic disruption, aimed at easing fiscal pressure.
Fiscal Deficit Update
Chaudhary stated that India’s fiscal deficit reduced from 9.2% in FY 2020-21 to 4.4% in FY 2025-26, reflecting recovery and better fiscal management post-pandemic.
Arrears Payment Feasibility
Due to pandemic-related spending and welfare measures, the payment of DA/DR arrears for 2020–21 was considered financially unfeasible.
Government’s Fiscal Condition
The freeze was implemented to maintain financial stability during unprecedented economic disruption caused by COVID-19.
Employees’ Concerns Continue
Central government employees continue to seek clarity and resolution regarding their 18-month pending DA/DR arrears.
Disclaimer
This is for informational purposes only. Verify details from official government sources, as updates on DA/DR arrears may change.
