New Delhi. Lakhs of central government employees and pensioners are once again disappointed. The Finance Ministry has made its stand clear regarding the arrears of Dearness Allowance (DA) and Dearness Relief (DR) that were stopped during the Covid-19 pandemic. The Ministry has clearly stated that at present it is not possible to pay these outstanding installments.

Battle going on for 6 years, again defeated

Employee unions have been continuously fighting on this issue for the last six years, but every time the government has rejected their demands. This time too, the Finance Ministry has refused to release the arrears of stalled installments citing the financial impact of Covid-19.

Why were the three installments of DA-DR stopped?

In a letter issued by the Department of Expenditure of the Finance Ministry on April 15, 2026, it was told that to reduce the economic pressure during the Covid-19 pandemic, the government had frozen three installments of DA/DR. These installments were to be implemented from 1 January 2020, 1 July 2020 and 1 January 2021. According to the ministry, at that time there was serious pressure on the financial position of the government due to huge expenditure on health and welfare schemes, due to which this decision was taken.

Supreme Court’s decision was cited, yet the government did not agree

This reply has come in response to the application of Defense Recognized Association in which the demand for release of arrears was raised citing a decision of the Supreme Court. In response, the ministry said that the economic impact of the pandemic was not limited to just one year, but its impact continued even after the financial year 2020-21. Therefore, the government did not find it practical to pay arrears of the pending installments.

Direct impact on lakhs of employees and pensioners

This decision of the government will have a direct impact on lakhs of central employees and pensioners across the country who were eagerly waiting for this arrears. At present, citing the financial situation, the government has completely rejected this demand and there is no possibility of any relief in the near future. The struggle of employee organizations continues, but the government’s stance still remains strict.