Will Central Govt Employees Get Their 3 DA Installments Frozen During the Pandemic?

The Confederation of Central Government Employees & Workers has once again brought attention to multiple unresolved demands of government employees and pensioners. Among these, a key issue is the unpaid dearness allowance (DA) arrears that were frozen during the COVID-19 pandemic.

According to a circular issued by the Confederation on March 7, 2025, employees have been persistently demanding the resolution of this issue, along with several other concerns. The government, however, has yet to take any concrete action on these demands.

What Led to the Protest?

On February 8, 2025, the Confederation’s National Executive Meeting decided to organise nationwide protests, including gate meetings and general body meetings on March 10-11. The objective is to create awareness among employees and prepare them for further demonstrations.

The Confederation accuses the government of prolonged inaction and failing to fulfil its obligations towards employees, further intensifying the discontent among workers.

Key Demands of the Confederation

The Charter of Demands presented by the Confederation includes several crucial employee-centric issues:

1. Formation of the 8th Pay Commission (8th CPC) – The Confederation demands the appointment of a committee, including the chairman, for salary revisions.
2. Restoration of the Old Pension Scheme (OPS) – The organisation seeks the abolition of the New Pension Scheme (NPS).
3. Payment of Frozen DA Arrears – Employees demand the release of 3 DA installments withheld from January 2020 to June 2021.
4. Revision of Pension Deductions – The Confederation wants the deducted pension amount to be restored in 12 years instead of 15 years.
5. Compassionate Job Appointments – The Confederation demands the removal of the 5% limit on compassionate job appointments and urges the government to employ all eligible applicants.
6. Filling of Vacant Government Posts – It seeks the immediate recruitment of employees and calls for an end to outsourcing and privatisation in government departments.
7. Freedom for Employee Unions – The Confederation insists on allowing employee organisations to function democratically without government interference.

Understanding the DA Arrears Issue

Dearness Allowance (DA) is increased twice a year—in January and July—to help employees cope with inflation. However, during the COVID-19 pandemic in 2020, the central government decided to freeze DA hikes for 18 months. This decision affected the wages of millions of government employees and pensioners, leaving them without the benefit of three DA installments.

The employee unions argue that the arrears should be paid since DA is a right, not a privilege. However, the government has consistently refused to release these arrears, citing financial constraints.

Will the Government Pay DA Arrears?

The government has repeatedly declined the demand for DA arrears, asserting that it is not financially viable. It has maintained that:

• The pandemic-induced economic crisis severely affected government revenues.
• Funds were diverted towards welfare schemes and economic recovery measures.
• Fiscal constraints make it impractical to release arrears, given the economic impact of the crisis.

The Modi government has reiterated its stance that arrears for FY 2020-21 cannot be granted due to fiscal spillovers from pandemic-related expenditures.

What Happens Next?

Despite the government’s firm position, the Confederation has vowed to continue its protests. Union leaders have urged employees to participate in meetings and demonstrations to strengthen their demands.

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