Will central government employees get arrears of 18 months of DA frozen during Covid-19? Here’s what finance ministry says

The central government froze three instalments of dearness allowance (DA) and dearness relief (DR) during the COVID-19 pandemic, citing severe economic disruption and the need to ease pressure on public finances. Member of Parliament Anand Bhadauria raised questions regarding the DA arrears for central government employees during COVID-19, to which the government responded with its official stance in Lok Sabha on August 11, 2025.

What is Dearness Allowance?

Dearness Allowance (DA) is a cost-of-living adjustment paid by the government to its employees and pensioners to help offset the impact of inflation.

Also read: Last DA hike of 3% or 4% under 7th CPC in July 2025? Central government employees can get this much increase in dearness allowance


Dearness Relief (DR) is an allowance paid to government pensioners to help them cope with rising prices, similar to Dearness Allowance (DA) for working employees.

ET Wealth Online breaks down the government's official response to below key questions.

Whether the decision to freeze 18 months’ dearness allowance and dearness relief for Central Government employees and pensioners during COVID-19 were taken due to economic disruption and to ease pressure on government finances?
The government responded in Parliament: The decision to freeze three instalments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees / pensioners due from January 1, 2020, July 1, 2020 & January 1, 2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on government finances.

If so, whether the fiscal condition of the government is still under pressure and is on the verge of bankruptcy; if so, the details thereof and the reasons for failure of the government to keep the robust fiscal condition of the country up to the mark which it inherited in legacy in 2014.
The government responded in Parliament: “The fiscal deficit of the government of India has narrowed from 9.2 per cent in the Financial Year (FY) 2020-21 to 4.4 per cent in the FY 2025-26 (Budget Estimates).”

The time by which the government would release the arrears of 18 months DA/DR?

The economic hit from COVID and extra welfare spending left no room in the budget to pay those delayed DA/DR amounts.

The government responded in Parliament: “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.”