Central government employees and pensioners have been waiting for the release of Dearness Allowance (DA) and Dearness Relief (DR) arrears that were withheld during the COVID-19 pandemic. The Finance Ministry stated in 2020 that payments for the 18 months of arrears would not be released, despite continued requests from employees and pensioners. The notification indicated that additional installments of DA and DR due from January 1, 2020, July 1, 2020, and January 1, 2021, would not be paid, but future installments would be restored prospectively starting from July 1, 2021. Meanwhile, a 2% increase in DA was approved on April 18, 2023, which will take effect from January 1, 2026, impacting approximately 50.46 lakh employees and 68.27 lakh pensioners. This increase is expected to cost the government ₹6,791.24 crore annually and is aimed at helping employees cope with rising prices. The 8th Central Pay Commission is also engaging with stakeholders to discuss various demands, including the payment of the withheld DA arrears.