8th Pay Commission: Central government employees are once again pressing for the restoration of 18 months of frozen Dearness Allowance (DA) arrears as discussions around the 8th Pay Commission gain momentum. With the commission set to be implemented on January 1, 2026, employee unions are intensifying their demands for financial relief that has been pending since the COVID-19 pandemic.
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Latest Developments: NC-JCM Meeting Highlights Employee Demands
The 63rd meeting of the Standing Committee of the National Council-Joint Consultative Machinery (JCM) was held on April 23, 2025. In the meeting, the staff side of the NC-JCM demanded the restoration of 18 months of DA/DR arrears to government employees, which were frozen during the COVID-19 period.
The meeting underscored the persistent concerns of government employees who have been waiting for these arrears since 2020. Despite repeated representations, the government has maintained its stance citing financial constraints from the pandemic’s aftermath.
Understanding the 18-Month DA Freeze
The DA is typically revised twice a year, in January and July. However, following the onset of COVID-19, the Centre suspended three DA hikes spanning 18 months, from January 2020 to June 2021. This freeze affected millions of central government employees and pensioners across the country.
The government’s rationale was clear: The financial pressure on government resources was the stated reason for freezing these DA installments. However, employees argue that with economic recovery underway, it’s time to restore these benefits.
Government’s Current Position on DA Arrears
The department informed us that as the adverse financial impact of the pandemic in 2020 and the financial welfare measures taken by the government had a fiscal spillover beyond FY 2020-21, arrears of DA/DR were not considered feasible.
This official response indicates the government’s continued reluctance to release the frozen DA amounts, citing ongoing fiscal implications from pandemic-era financial support measures.
8th Pay Commission Timeline and Implementation
The central government approved the 8th Pay Commission in January this year. The 8th Pay Commission is scheduled to be implemented on 1 January 2026. The tenure of the current 7th Pay Commission is ending on 31 December 2025.
However, crucial details remain pending: Although the central government has approved the 8th Pay Commission, the commission’s recommendations have not yet been implemented. The government is yet to officially announce the appointment of the chairman and other members of the commission. The Terms of Reference (ToR) for the 8th Pay Commission have also not been approved.
What Central Government Employees Can Expect
The formation of the 8th Pay Commission brings hope for comprehensive salary and benefit revisions. When approved, there can be crucial negotiations between central government employees and the Centre on salary, pension and allowance revisions.
Employee representatives remain optimistic about the Terms of Reference approval. As one official noted, the expectation is for government approval to come soon, which would provide clarity on the commission’s scope and mandate.
Strategic Pressure Ahead of Union Budget
Ahead of the Union Budget 2025, the Staff Side of the NC JCM wrote to Finance Minister Nirmala Sitharaman seeking the release of the DA arrears of 18 months. This timing suggests a coordinated effort to leverage budget discussions for employee benefits.
The Road Ahead for Government Employees
While the 8th Pay Commission represents a significant opportunity for salary and benefit improvements, the immediate focus remains on DA arrears restoration. The persistence of employee unions in raising this issue demonstrates the importance of these arrears to millions of government workers.
The coming months will be crucial as the government finalizes the 8th Pay Commission’s structure and addresses long-pending employee demands. For central government employees, the dual hope remains: restoration of frozen DA arrears and favorable recommendations from the upcoming pay commission.
With implementation scheduled for early 2026, the pressure on the government to address these concerns is likely to intensify, making this a key issue to watch in the coming budget cycles.
