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8th Pay Commission: Payment Regarding 18-Months Frozen DA Arrears During Covid Gets Renewed Hope, Why So?

8th Pay Commission: Discussion on the payment regarding 18-months frozen DA arrears during covid has got a renewed momentum. Find out the reason behind it.

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8th Pay Commission: Frozen DA Restoration
8th Pay Commission: Frozen DA Restoration

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.

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8th Pay Commission: Terms Of Reference Awaited
8th Pay Commission: Terms Of Reference Awaited

The NC-JCM discussed matters related to employee interests. While the government has announced the formation of the 8th CPC, the staff side stated that the orders of the constitution of the 8th CPC and ToRs are awaited.

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Demands for restoration of 18-month frozen DA arrears during Covid
Demands for restoration of 18-month frozen DA arrears during Covid

The staff side of the NC-JCM reiterated its demand for restoration of 18 months of DA/DR arrears to government employees which were frozen during the COVID-19 period. The department informed 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.

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Why was DA withheld during COVID?
Why was DA withheld during COVID?

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. The financial pressure on government resources was the stated reason for freezing these DA installments. 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.

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When will the 8th Pay Commission be formed?
When will the 8th Pay Commission be formed?

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. 

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8th Pay Commission: Announcement Of Chairman Awaited
8th Pay Commission: Announcement Of Chairman Awaited

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.

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8th Pay Commission: Negotiation On Salary, Pension
8th Pay Commission: Negotiation On Salary, Pension

When approved, there can be crucial negotiations between central government employees and the Centre on salary, pension and allowance revisions. “We expect the Terms of Reference to get the government’s nod soon. It should be approved at the earliest,” Secretary of Staff Side of the NC-JCM Shiv Gopal Mishra said in a statement to NDTV Profit last month.

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