A big relief news has come for Central Government Employees. Government is going to take a decision on 18-month DA arear amount. If the Central government gives 18 months dues arrear to the employees and Pensioners, it will be a great relief for the employee.
Let me tell you that at the time of Covid-19, the Central Government had stopped the DA from 2020 to June 2021(18 Months) of its employees and pensioners. The government had taken this decision during the Covid-19 pandemic, so that there is no excessive financial pressure on the government.
This issue has been discussed many times, but till now no decision has been taken by the government. But now in 2025, again this topic in news and according to some media, government can think about it.
What is Dearness Allowance?
Dearness Allowance is a cost-of-living adjustment allowance paid by the government to the Central Government sector employees & pensioners, to help them cope with inflation. It is calculated as a percentage of the basic salary and is revised periodically based on the Consumer Price Index (CPI).
The Central Government revised DA in every six months (January and July).
Will Government Give 18 Month DA Arrear?
This is a big question, actually from government side no updates regarding the 18 Month DA arrear but time to time this news coming out from the media, also Employees union demanding for the arrear. But from the government side no movement regarding the Arrear and not given any clear information weather they will give or not.
What is Arrear?
Arrear is a pending amount. Let me explain in details. When government is increasing salary or any allowance and that is affecting from the date which announce by the government but that amount is credit to the account after 3-4 month that is called arrear amount.
Just example, Government revising DA in January but they announced in March but affecting from January so the employee will get revised DA from January so that means 3 months after government has revised so 3 moth is due that is arrear.
What will be the benefit if Government Approve 18 Month DA Arrear?
If the government decides to pay an 18-month Dearness Allowance (DA) arrear, employees and pensioners will receive a lump sum amount for the unpaid DA from that period. This can provide several financial benefits:
Financial boost for employees and pensioners.
A lump sum amount can improve cash flow for government employees and pensioners.
It can be used for loan repayments, investments, or personal expenses.
A large number of government employees getting arrears will lead to higher spending, boosting demand in sectors like real estate, automobiles, and consumer goods.