7th Pay Commission: Central Government Employees Could Receive Up to ₹2.20 Lakh in DA Arrears

Updated: 13-06-2025, 07.02 PM

Central government employees and pensioners are anticipating the disbursal of long-pending dearness allowance (DA) arrears, which could amount to as much as ₹2.20 lakh per person. The spotlight has once again turned to the COVID-era freeze on DA and dearness relief (DR)—a break that persisted from July 2020 to January 2021—and is fueling renewed calls for payment ahead of July 2025’s scheduled DA revision under the 7th Pay Commission.

7th Pay Commission

DA Arrears: What’s the Big Deal?

In a recent NC-JCM standing committee meeting at Delhi’s Civil Services Officers Institute (CSOI), union leaders—including Shivgopal Mishra and M. Raghavaiya—urged the government to release DA arrears for the 18-month period that was withheld during the pandemic zeenews.india.com+12financialexpress.com+12timesbull.com+12. The withholding affected hikes due in January and July of 2020 and January 2021.

How Much Arrears Are We Talking About?

For lower grades (Level‑1): Arrears could range between approximately ₹11,880 and ₹37,554, depending on basic pay angelone.in+1gconnect.in+1timesbull.com.
For senior staff (Level‑13 and Level‑14): Arrears may surge to ₹1.44 lakh–₹2.18 lakh per employee indiatoday.in+7timesbull.com+7indiatoday.in+7.

Examples:

Basic pay ₹18,000 → DA arrears ~₹11,880 (spread across three months)
Basic pay ₹56,000 → DA arrears ~₹37,554

At higher pay scales (e.g., ₹1.23–2.15 lakh), arrears could reach ₹2.20 lakh per person goodreturns.in+11timesbull.com+11informalnewz.com+11.

DA Revision Update: From January to July 2025

In March 2025, DA was incremented from 53% to 55% (effective January 2025).
A second DA revision—expected to take effect from July 1, 2025—is likely to be announced around Diwali en.wikipedia.org+9timesbull.com+9financialexpress.com+9.

The precise hike is still uncertain. While some experts expect another 2% jump (to 57%), others cite recent AICPI-IW figures that could support a larger 3% increase financialexpress.com+5goodreturns.in+5financialexpress.com+5.

Government vs. Employee Stand

Employee unions are adamant that the 18-month freeze was unjust and must be reversed sansad.in+7financialexpress.com+7timesbull.com+7. The finance ministry, however, continues to argue that fiscal stress during the pandemic made it unviable to release those arrears at the time potoolsblog.in+4informalnewz.com+4angelone.in+4.

Beyond Arrears: Other Key Takeaways from the CSOI Meeting

8th Pay Commission: Employee representatives called for prompt constitution of the Commission, nomination of the chairperson, and issuance of Terms of Reference (ToR). They stressed that any delay must come with arrears if implementation starts post-January 1, 2026 zeenews.india.com+5financialexpress.com+5timesbull.com+5.
Central Government Employees Group Insurance Scheme (CGEGIS): A fresh proposal has been drafted by the Department of Expenditure and will be shared soon potoolsblog.in+3financialexpress.com+3informalnewz.com+3.

What Lies Ahead

With the July 2025 DA revision looming, all eyes are on whether the government will pair the update with the long-sought 18-month arrears. A favorable DA adjustment could boost incomes—especially if it reaches 3%, raising the DA from the current 55% to as high as 58% goodreturns.in+5financialexpress.com+5financialexpress.com+5.

Why This Matters

Financial Relief: Employees and pensioners affected during the pandemic endured a freeze in cost-of-living adjustments. Payment of these arrears could bring significant financial relief—especially at higher pay levels.
Policy Precedent: How this is handled could impact expectations around future pay commissions and allowances.
Union Leverage: Persistent dialogue and pressure at forums like the NC‑JCM can hasten administrative action.

Bottom Line

The possibility of retrieving up to ₹2.20 lakh in DA arrears is a major development for central government staff. With the second DA revision under the 7th Pay Commission nearing, and momentum building for discussions around the 8th Pay Commission and other benefits, central employees have real reasons to stay hopeful. However, final decisions hinge on government announcements—expected around Diwali for the DA hike, and potentially linked to next year’s budget for arrears and commission formation.

Author Profile

Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.