Picture it on the portal of the millions of central government employees and pensioners across India closing their eyes when they check their bank accounts, dreaming of the long-sought financial explosion which could possibly pierce the bowels of inflation with a bit of hope. As 2025 concludes, the focus becomes brighter and tighter on DA arrears, causing a state of anxiousness with debates, followed by a couple of increments.
Inspecting DA And Its Impulsion
In the case of the central government employees, DA provides relief against the rising cost of living. The government has announced it in respect of changes in the All India Consumer Price Index for Industrial Workers to maintain the purchasing power of the allowance.
In the year 2025, a 3% DA hike was authorized by the Union cabinet, bringing it from 55% to 58% from July 1st, 2025. This benefits over 49 lakh employees and 65 lakh pensioners. Arrears for July to September (Oct, in some more cases) were resolved with their November or December salaries.
Current DA Rate And Recent Hikes
It closely captures the inflationary trend. This implies the correction would be an equal relief to the pensioners as well.
| Period Effective | Previous DA Rate | New DA Rate | Increase | Arrears Months Paid |
|---|---|---|---|---|
| January 2025 | 53% | 55% | 2% | Jan-Mar 2025 |
| July 2025 | 55% | 58% | 3% | Jul-Sep/Oct 2025 |
The Pending 18-Month Arrears Saga
The greater discussion has been accompanied by COVID. 19 procedures as, through this period, DA got frozen in favor of 18 months from January 2020 to June 2021. The projected value was taken up largely in arrears, numbering three, hence the current outstanding dues.
