The central government has approved the 8th Pay Commission to look into salary, pension, and allowance revisions for central government employees. This decision comes as employee unions continue to raise demands for better financial benefits and restoration of pending dues.
During the 63rd meeting of the National Council-Joint Consultative Machinery (NC-JCM) on April 23, 2025, employee representatives strongly demanded the release of 18-month dearness allowance (DA) and dearness relief (DR) arrears. These arrears were frozen during the COVID-19 pandemic to reduce financial stress on the government.
The government had put a hold on three installments of DA from January 2020 to June 2021 due to budget constraints caused by the pandemic. Usually, DA is revised every six months, in January and July. However, due to COVID-19, employees missed out on their rightful hikes for a total of 18 months. As the financial burden extended even beyond the financial year 2020-21, the arrears were not paid.
Even though the formation of the 8th Pay Commission has been announced, the Terms of Reference (ToRs) are still awaited. Employee representatives are pushing for clear timelines and early implementation. They are also hopeful that the pending DA/DR dues will be restored as part of the new pay recommendations.
Central government employees and pensioners continue to request Finance Minister Nirmala Sitharaman to consider their appeal for the release of DA arrears. With rising living costs and inflation, the demand has gained fresh momentum.
If approved, the restoration of the frozen DA could offer financial relief to millions of employees and pensioners across India. Everyone is now watching closely for updates on the 8th Pay and related decisions.
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