DA Hike 2025: The Central Government has sanctioned a DA hike of 2% for its employees, with effect from January 2025. Though this respite for millions of government staff and pensioners was a glaring welcome boon, the ongoing consideration of pending DA arrears for 18 months keeps raining in heated debates.
Employee unions for a long time demanded payment of these dues, which were withheld after the COVID-19 pandemic. Now, the government has finally stated its position–this is what you should know.
What Makes DA Arrears Postponed?
During the time of COVID, the government had postponed three installments of DA and DR for its Central employees and pensioners from Jan 2020 to June 2021. The funds that were shortchanged will help the government utilize ₹34,402 crore towards the financial burden arising out of the same.
In the Lok Sabha, questioning came recently about whether these arrears are paid or not. The Minister of State for Finance noted that arrears could not be released with the economic outcome of COVID-19. The government referred to fiscal constraints and ongoing recovery as primary recommendations.
Will Employees Ever Get Their Pending DA Arrears?
Despite constant pleadings from the employee unions and pensioner associations, the government continues to deny the payment. Some of the main reasons are:
- High fiscal deficit (exceeding FRBM Act limits)
- Post-pandemic recovery as the focus of economic priorities
- No appropriation for DA arrears in the Union Budget 2025
The government has also ignored the observation from analogous cases in the Supreme Court, which stated that delayed payments should attract an interest of 6%.
Employee Unions’ Demands and the Government’s Stand
Concerns have been raised about the demands of employee unions and the government’s position thereon.
Several employee organizations, including the National Joint Council of Action (NJCA) and All India Defence Employees Federation, have written to the Cabinet Secretary and Finance Ministry requesting the release of arrears. Some suggestions included:
- Lump-sum payment of dues
- Phased disbursement over time
Nonetheless, the government appears unwilling to reconsider its position.
Final Verdict
In no uncertain terms, the Central Government has stated that there shall be no payment of DA/DR arrears for 18 months. Even though the economy is gaining its stability, the government continues to state that due to financial restraints, they will make no payout.
