As Budget 2025 approaches, central and state government employees may finally see long-awaited relief regarding pending Dearness Allowance (DA) arrears. The issue of deferred DA payments has become a key concern, especially with the rising cost of living. Fresh signals from policy corridors suggest that the upcoming Union Budget might address the long-standing demand to clear the 18-month backlog of DA arrears, offering much-needed financial respite to lakhs of employees and pensioners.
Central Government DA Arrears: What’s Pending?
Due to the financial strain brought on by the COVID-19 pandemic, the Central Government halted DA payments for the period January 2020 to June 2021. This freeze led to accumulated arrears estimated at ₹20,000 crore.
Despite continuous demands by employee unions, the Finance Ministry has so far cited budgetary limitations as the primary reason for not clearing the dues in one go. However, officials have hinted at exploring phased disbursal options instead of a one-time payout.
State-Level Update: Andhra Pradesh in Focus
In Andhra Pradesh, the situation is equally serious. Over the past 14 months, four DA instalments are overdue. According to the AP Government Employees Federation, the total outstanding amount—covering DA, PRC arrears, and unpaid leave encashments—stands at a massive ₹21,800 crore.
The Federation has urged the state cabinet, scheduled to meet on August 6, to clear at least two pending DA instalments immediately to ease the financial stress on employees.
Government’s Official Stance
In a recent Rajya Sabha reply, the Finance Ministry reaffirmed that releasing the full 18 months of DA arrears for central government employees is not currently feasible due to fiscal constraints. However, the government has committed to exploring gradual relief mechanisms over time, keeping in mind the financial health of the economy.
Financial Implications: Impact on Households
Releasing even a part of the pending DA arrears could significantly boost household liquidity. For central government employees and pensioners, the lump sum payout—alongside an anticipated DA hike—could enhance purchasing power, uplift morale, and stimulate festive season spending.
Key Dates & Future Expectations
- August 6, 2025: State cabinet meeting in Andhra Pradesh, expected to decide on DA dues.
- Late 2025: Union Budget presentation, which may include official word on DA arrears.
Employees are advised to follow updates from official portals such as OMC websites and employee union platforms to stay informed about the latest announcements.
DA Arrears Status Overview
| Category | Arrears Period | Approx. Amount (₹ crore) | Current Status |
|---|---|---|---|
| Central Govt Employees | Jan 2020 – Jun 2021 | 20,000 | Under Union Budget consideration |
| Andhra Pradesh Employees | Jul 2024 – Jun 2025 | 21,800 | Federation demanding immediate release |
| Pensioners | Jan 2025 – Mar 2025 | – | Awaiting retrospective benefit decision |
Conclusion
The pending DA arrears issue continues to gain momentum as Budget 2025 draws near. While fiscal constraints have delayed relief, there is growing pressure on both central and state governments to address these dues. Employees and pensioners should remain alert to official communications and be financially prepared in case announcements are made.
FAQs
Why were DA arrears held back for central employees?
DA payments from Jan 2020 to Jun 2021 were paused due to the pandemic’s financial impact on the government.
How much is the total pending DA arrears for central employees?
Around ₹20,000 crore is still pending for central government employees.
Will the entire arrear be paid in Budget 2025?
Full payment is unlikely; the government may release the arrears in phases due to budget limitations.
What is the status in Andhra Pradesh?
Four DA instalments are overdue, and the state government owes ₹21,800 crore in dues including PRC and leave bills.
How can employees track official updates?
Employees should follow OMC websites and their respective employee unions for real-time announcements.
It will be great for us if it is arriving before Diwali 2025🙏