The issue of 18-month Dearness Allowance (DA) and Dearness Relief (DR) arrears continues to remain an important demand among central government employees and pensioners. Various employee and pensioner organisations have raised the matter before the 8th Central Pay Commission and are seeking payment of the DA/DR installments that were withheld during the COVID-19 period.
The demand relates to three DA/DR installments that were due in January 2020, July 2020 and January 2021. The government had frozen the increase during the pandemic, citing the extraordinary financial pressure created by COVID-19. The Centre has previously clarified through parliamentary replies that the arrears were not considered payable because of the financial circumstances at that time.
Employees and Pensioners Seek Release of DA Arrears
The demand for releasing the 18 months of DA/DR arrears has again become part of representations submitted in connection with the 8th Pay Commission.
Pensioner organisations in Uttar Pradesh have also included the issue in their recent list of demands. In September 2026, retired employees and pensioners submitted a 12-point charter seeking several changes, including coverage under the 8th Pay Commission for those who retired before January 1, 2026. Their demands also include pension revision, restoration of the Old Pension Scheme, tax relief on pension and payment of the withheld COVID-period DA/DR arrears.
Another demand raised by the organisations is that DA above 50 per cent should be merged with basic pension. They have also sought a 5 per cent increase in pension every five years after the age of 65 and changes to the period for recovery of pension commutation.
These proposals are demands from employee and pensioner organisations and do not represent decisions already approved by the government or the 8th Pay Commission.
8th Pay Commission: Current Status
The 8th Central Pay Commission was formally constituted on November 3, 2025. Justice Ranjana Prakash Desai is the Chairperson, while Professor Pulak Ghosh is the part-time member and Pankaj Jain is the Member-Secretary.
The Union Cabinet’s approved Terms of Reference give the Commission 18 months from the date of its constitution to submit its recommendations.
This means the 18-month period runs from November 3, 2025, rather than from the date when the Commission was first announced. Therefore, the final recommendations are expected within the stipulated period ending around May 2027, subject to the Commission’s work and any subsequent developments.
The Commission is examining issues related to pay, allowances, pension and other benefits for the categories covered under its mandate. Its recommendations will ultimately be considered by the government.
Will the 18-Month DA Arrears Be Paid?
At present, the demand for payment of the withheld 18-month DA/DR arrears remains a demand rather than an approved government decision. Pensioner and employee organisations continue to press for the release of the three frozen installments as part of their submissions to the 8th Pay Commission.
The final position will depend on the recommendations made by the 8th Central Pay Commission and the subsequent decision of the government. Until such a decision is officially announced, there is no confirmed date for payment of the 18-month DA/DR arrears.
Disclaimer
This article is based on publicly available government information and reports concerning the 18-month DA/DR arrears and the 8th Central Pay Commission. The demands mentioned above have been raised by employee and pensioner organisations and should not be treated as confirmed government decisions. Readers should rely on official government notifications for any final announcement regarding arrears, pension revisions or Pay Commission recommendations.