The government’s decision on Dearness Allowance (DA) arrears, which employees and pensioners have been waiting for over 26 months, has triggered a fresh debate. Although the government has announced that two DAs will be implemented, the arrears will not be paid immediately. Instead, they are reportedly being deferred in instalments until 2027 and 2028, causing serious dissatisfaction among employees.
On one hand, the government is highlighting that it has “given two DAs”. On the other hand, employees and pensioners still appear to be facing a prolonged wait to receive the arrears due to them.
Critics are questioning whether the government has announced the DA but created another hurdle when it comes to paying the arrears.
Employees Waited 26 Months for DA
The DA due to employees has reportedly been kept pending for as long as 26 months. The government has now issued orders relating to two DAs. However, employee groups say the real issue lies in the manner in which the arrears are being paid.
According to the details mentioned in the clipping, the first DA is 2.73%, with arrears pending for 26 months. Another 1.82% DA reportedly has arrears pending for 20 months.
Employees who waited for 26 months had expected the accumulated arrears to be paid in full. However, that does not appear to be the case.
DA Given, Arrears to Be Paid Later?
This has now become the main question among employees.
While the DA will be implemented, the arrears are reportedly being paid in instalments. As a result, employees will not receive the full financial benefit immediately.
Employees are questioning why, after withholding the DA for 26 months, the government is once again making them wait for the arrears.
First DA Arrears to Be Paid in Four Instalments Until 2027
According to the schedule mentioned in the clipping, the arrears related to the 2.73% DA will be paid in four instalments:
- First instalment – 10% – April 2027
- Second instalment – 30% – June 2027
- Third instalment – 30% – August 2027
- Fourth instalment – 30% – October 2027
This means employees will not receive the entire arrears at once. Instead, the amount will reportedly be paid in four instalments between April and October 2027.
Employee groups are questioning why the arrears are being paid in instalments after the DA itself was kept pending for 26 months.
Second DA Arrears Deferred Until July 2028
A similar situation reportedly exists with the 1.82% DA, for which arrears have been pending for 20 months.
According to the schedule mentioned in the clipping:
- First instalment – 10% – January 2028
- Second instalment – 30% – March 2028
- Third instalment – 30% – May 2028
- Fourth instalment – 30% – July 2028
This means employees may have to wait until July 2028 to receive the entire arrears relating to the second DA.
While the government is highlighting that two DAs have been given, employee organisations are questioning why the arrears are being deferred until 2028.
Another Twist for OPS Employees: Arrears to Be Credited to GPF
The government’s decision regarding employees covered under the Old Pension Scheme (OPS) has also become a matter of discussion.
According to the clipping, the arrears will be credited to the employees’ General Provident Fund (GPF) accounts.
This means the arrears will reportedly not be paid directly as cash to employees but will instead be deposited into their GPF accounts.
Employees who have already waited for months for their DA are questioning why the arrears should be credited through another mechanism rather than being made available directly.
Critics argue that this further strengthens the perception that the government has announced the DA but introduced another condition regarding the arrears.
Pensioners Also Face Delays in Arrears Payments
Pensioners are also reportedly affected by the instalment-based payment system.
Pensioners, particularly those in their advanced years, are questioning why they should have to wait for several more years to receive the amounts due to them.
The key question being raised among pensioner groups is whether DA arrears, which are considered a financial entitlement, should be deferred for years.
What About DAs Due From July 2025?
Another important question concerns the DAs that became due from July 2025.
According to the clipping, there is still no clear information regarding these DAs. At a time when existing arrears are reportedly being pushed until 2027 and 2028, employees are asking what will happen to the newly due DA.
With one DA arrear yet to be cleared, another DA has already become due. Employees fear that if arrears continue to be pushed forward, the full financial benefits due to them may remain uncertain for years.
Two DAs Given, But Arrears Still Deferred
Employee groups argue that the overall situation can be summed up as follows:
The government kept the DA pending for 26 months, announced two DAs, but deferred the arrears until 2027 and 2028.
The first DA arrears are reportedly being paid in four instalments, while the second DA arrears will also be paid in four instalments. For OPS employees, the arrears are reportedly being credited to GPF accounts, while pensioners too are facing instalment-based payments.
At the same time, there is reportedly no clarity on the DAs that became due from July 2025.
The key question, therefore, is no longer simply “When will two DAs be given?” but rather:
“When will employees actually receive the arrears due to them?”
Relief Through DA or Another Wait for Arrears?
Issuing orders for the two DAs may provide some relief to employees and pensioners who have been waiting for months. However, extending the payment of arrears over several years is reportedly causing significant dissatisfaction.
The 26-month-old arrears are being spread across instalments until 2027, while the arrears relating to the other DA are reportedly being deferred until July 2028. For OPS employees, the arrears are to be credited to GPF accounts, while pensioners are also reportedly subject to instalment-based payments.
Meanwhile, the status of the DA due from July 2025 remains a major concern for employees.
That is why employees are now asking one key question:
“The government says it has given two DAs. Then why are our arrears being deferred until 2028?”
The government’s decision has consequently triggered criticism that “two DAs were given, but the arrears came with several twists.”
