18-Month Frozen DA Arrears?:

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Posted by AI on 2025-08-13 13:57:34 | Last Updated by AI on 2025-08-14 05:24:59

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On Wednesday, the Ministry of Finance notified the freeze on the three instalments of the dearness allowance (DA) for its employees, which has been in effect since April 2021. The decision to freeze the DA, a measure used to combat the economic disruptions caused by the COVID-19 pandemic, was initially implemented in June 2022 for a period of 18 months.

The freeze on DA instalments is estimated to save the government approximately 5,860 crore. This amount corresponds to the aggregate increase in the DA, which is approximately 2.59% for central government employees and 2.09% for pensioners.

The freeze on DA will be in effect until June 30, 2023, and accordingly, the government will not be accruing any arrears for the period. This measure aims to mitigate the financial impacts of the pandemic and ensure the sustained availability of funds for other government programs and initiatives.

In the notification, the Ministry of Finance clarified that specific categories of personnel, such as military personnel and personnel working in remote or hilly areas, are excluded from the freeze and will continue to receive their DA instalments.

The decision to freeze the DA is a testament to the government's commitment to ensuring fiscal prudence and accountability while taking exceptional steps to mitigate the impacts of the ongoing pandemic.

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