As discussions around the pending 18-month DA arrears gain pace once again in 2025, lakhs of Central Government employees and pensioners are looking for clarity on whether any payout or relief is finally coming. With new financial decisions expected soon, this update outlines what employees should know right now.
What the 18-Month DA Arrears Issue Is About
The 18-month DA arrears relate to Dearness Allowance and Dearness Relief that were frozen between January 2020 and June 2021 due to the financial impact of the pandemic. While DA resumed after the freeze period, the arrears for those 18 months remained pending, leading to continuous demands from unions and retirees.
In 2025, the issue has returned to the spotlight as new recommendations and discussions are expected leading up to upcoming committee reviews.
Latest Developments in 2025
New reports suggest that the government is analyzing the financial impact of releasing arrears. Employee organizations have renewed demands for a one-time settlement, partial release, or phased compensation. While no official announcement has been made yet, the expectation of some form of relief this year is stronger than before.
Authorities are also reviewing budgetary space and overall fiscal conditions for 2025–26, which could influence the final decision.
Expected Arrears Amount for Employees and Pensioners
The pending arrears amount varies based on pay level, DA percentage, and basic salary. The freeze period included three increments of DA that were not paid. The approximate slab-wise range is as follows.
Estimated DA Arrears Range (Approx.)
| Pay Level | Estimated Arrears (Approx.) |
|---|---|
| Level 1 to Level 3 | ₹11,000 to ₹25,000 |
| Level 4 to Level 6 | ₹26,000 to ₹48,000 |
| Level 7 to Level 10 | ₹49,000 to ₹76,000 |
| Level 11 and above | ₹77,000 to ₹1.5 lakh |
These estimates may vary depending on individual basic pay and applicable allowances.
Why the DA Arrears Matter
For many employees and pensioners, these arrears represent a significant pending amount. The payout can provide financial cushioning, especially for retirees dependent solely on pension income.
Key Expectations for 2025
Only one bullet-point section is allowed, so the major expectations for this year are listed below:
- Possibility of partial settlement depending on fiscal room
- Consideration of a lump-sum relief package
- High-level committee evaluation expected
- Employee unions pushing harder for timely resolution
- Government exploring options without burdening the fiscal deficit
- Potential announcement during upcoming budget sessions
How Employees Should Prepare
Although no official confirmation has been issued yet, employees should track announcements from the Finance Ministry and DoPT. Pensioners should also monitor updates from the Pension Department for clarity on Dearness Relief adjustments.
Financial planners suggest keeping expectations realistic until an official release is confirmed. Any computation or expected payout should be treated as tentative for now.
Impact on Future DA Hikes
The pending arrears issue does not affect current or future DA hikes. DA continues to be revised twice a year based on AICPI data. Employees will continue receiving hikes as usual even if arrears are not cleared immediately.
Conclusion
The DA arrears issue has regained momentum in 2025, giving Central Government employees and pensioners fresh hope for a possible settlement. While the government has yet to make a formal decision, ongoing discussions and financial reviews indicate that some form of relief could be considered this year. Employees should stay attentive to official updates and remain prepared for changes as new announcements are expected soon.
Disclaimer
Information is based on ongoing discussions and estimates. Final decisions may differ from expectations.
