Government’s Decision on 18-Month DA Arrears: Latest 7th Pay Commission Updates

The central government has recently increased the Dearness Allowance (DA) for employees and pensioners, providing much-needed financial relief. However, despite this positive move, employees are still left disappointed due to the unresolved issue of 18-month DA arrears that were withheld during the COVID-19 pandemic.

In addition, many employees are eagerly waiting for updates on the 8th Pay Commission. Here’s the latest information on these crucial developments.

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No 18-Month DA Arrears for Employees

The Modi government has officially confirmed that the pending 18-month DA and Dearness Relief (DR) will not be paid to central employees and pensioners. This statement was made through written responses in both Houses of Parliament, dashing the hopes of many awaiting compensation.

Why Did the Government Withhold DA Arrears?

During the financial crisis caused by the COVID-19 pandemic, the government froze three installments of DA and DR from January 2020 to June 2021. According to Minister of State for Finance, Pankaj Chaudhary, these arrears cannot be released due to the economic burden and the need for financial allocation to various welfare schemes.

Also Read : 8th Pay Commission HRA: Expected HRA Hike Based on 7th CPC for Levels 1 to 3 in Various Cities

Despite employee dissatisfaction, the government maintains that this decision was necessary to stabilize the economy during an unprecedented crisis.

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Latest DA Hike: What Employees Will Receive Now

Under the 7th Pay Commission, central government employees and pensioners were previously receiving a 53% DA. Recently, the government approved a 2% hike, raising DA to 55%. This increase aims to help employees manage rising inflation and improve their financial stability.

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8th Pay Commission: What to Expect

One of the most anticipated developments is the implementation of the 8th Pay Commission. On January 16, 2025, Prime Minister Narendra Modi approved the formation of the new commission, which will determine salary revisions and allowance adjustments for 50 lakh central employees and 65 lakh pensioners.

When Will the 8th Pay Commission Be Implemented?

The 7th Pay Commission was implemented in 2016 and is set to expire in December 2025. Based on previous timelines, the 8th Pay Commission is expected to come into effect by January 2026, with the revised salary structure being implemented thereafter.

Note: While the government has increased DA for employees, the refusal to pay the 18-month DA arrears remains a point of contention. Employees now look forward to the 8th Pay Commission, which is expected to bring significant changes to their pay structure from 2026.

Stay tuned for more updates on government salary revisions and allowances.