Big news for central government employees. The rise in dearness allowance (DA) has become a hot topic for central government employees. Lately, the discussion around DA arrears has also come into play. During the Covid pandemic, the government halted three DA installments from January 2020 to June 2021, and employees are now pushing for those payments to be made. However, the government has consistently turned down these requests, and the issue is gaining traction again.
The Confederation of Central Government Employees & Workers has declared plans to ramp up protests regarding the unpaid DA installments. Additionally, employees are calling for the swift establishment of the 8th Pay Commission and the restoration of the Old Pension Scheme (OPS).
In a circular dated March 7, 2025, the Central Employees Union urged the government to address several longstanding demands, including the DA arrears. They argue that the government’s negligence is preventing employees from receiving their rightful benefits. Previously, during the National Executive Meeting of the Employees Union on February 8, 2025, it was decided to hold gate meetings and general body meetings nationwide on March 10 and 11 to rally employees for the cause.
The union emphasizes the need for employees to come together against government policies to effectively advocate for their rights.
So, what are the key demands from the employees? The Central Employees Union has outlined several significant issues in its Charter of Demands, which include:
Formation of the 8th Pay Commission – It’s crucial to appoint the Chairman and other members of the new Pay Commission without delay.
Restoration of the Old Pension Scheme (OPS) – The Old Pension Scheme should be reinstated by eliminating the New Pension Scheme (NPS).
Payment of pending DA installments – The three installments of Dearness Allowance (DA) that were halted during the Covid pandemic need to be released.
Shorten the pension deduction period – The deductions from pensioners’ pensions should be completed in 12 years instead of the current 15 years.
Remove the job limit for compassionate grounds – The 5% cap on compassionate appointments should be lifted, allowing all qualified candidates to secure government jobs.
Fill vacant positions and halt privatization – All vacant roles in government departments should be filled, and the privatization of these departments should be stopped.
Support democratic functioning of trade unions – Employees should have the freedom to organize and advocate for their rights.
What’s the deal with DA arrears?
Dearness Allowance (DA) is typically adjusted every January and July. However, in 2020, the government paused the DA increase for 18 months due to the Covid pandemic, leaving three installments pending for employees. Unions are now insisting that the government release this overdue DA, claiming it’s their rightful entitlement. Unfortunately, the government has yet to agree to this demand.
Will the government pay the DA arrears?
The government has repeatedly stated that paying DA arrears isn’t feasible. They argue that the economic strain from the Covid pandemic necessitated various welfare programs, which continued to impact the economy even after 2020-21. Nevertheless, employee unions have made it clear that they will persist in their fight for their rights.