Dearness Allowance (DA) for central government employees is 60% of basic pay, effective from 1 January 2026. The Union Cabinet approved this 2-point increase on 18 April 2026. The next instalment, due from 1 July 2026, had not been approved as of late October 2026. Price index data points to a 3-point rise to about 63%, but that is a projection, not an order. Pensioners get Dearness Relief (DR) at the same rate. This page covers the current rate, the full recent history, the formula, what 60% and 63% mean for each pay level, and how arrears work.
Current DA rate at a glance
| Current DA / DR | 60% of basic pay or basic pension, from 1 January 2026 |
|---|---|
| Approved on | 18 April 2026 (Union Cabinet), with arrears from January |
| Next instalment | Due from 1 July 2026; not yet approved as of late October 2026 |
| Expected next rate | About 63% (3-point rise), based on AICPI-IW data; unofficial until the Cabinet approves it |
| Covers | About 50.46 lakh central government employees and 68.27 lakh pensioners |
| Revised | Twice a year, from 1 January and 1 July, under the 7th Pay Commission formula |
DA rate history for central government employees
| Effective from | DA rate | Increase | Approved |
|---|---|---|---|
| 1 July 2026 | Pending (about 63% expected) | About 3 points | Not yet approved |
| 1 January 2026 | 60% | 2 points | 18 April 2026 |
| 1 July 2025 | 58% | 3 points | 1 October 2025 |
| 1 January 2025 | 55% | 2 points | March 2025 |
| 1 July 2024 | 53% | 3 points | 16 October 2024 |
| 1 January 2024 | 50% | 4 points | March 2024 |
| 1 July 2023 | 46% | 4 points | 18 October 2023 |
| 1 January 2023 | 42% | 4 points | March 2023 |
| 1 July 2022 | 38% | 4 points | 28 September 2022 |
| 1 July 2021 | 31% | 3 points | 21 October 2021 |
Every revision applies from 1 January or 1 July, but the Cabinet approves it months later. The difference is paid as arrears. The July instalment has usually been approved between late September and October.
An earlier version of this page said DA rose to 46% "from July 2024". That was wrong: 46% applied from July 2023.
What 60% DA, and a possible 63%, means for your salary
DA is a percentage of basic pay only. Here it is at the entry pay of common levels:
| Pay level | Basic pay | DA at 60% | DA at 63% (if approved) | Extra per month |
|---|---|---|---|---|
| Level 1 | ₹18,000 | ₹10,800 | ₹11,340 | ₹540 |
| Level 4 | ₹25,500 | ₹15,300 | ₹16,065 | ₹765 |
| Level 6 | ₹35,400 | ₹21,240 | ₹22,302 | ₹1,062 |
| Level 7 | ₹44,900 | ₹26,940 | ₹28,287 | ₹1,347 |
| Level 10 | ₹56,100 | ₹33,660 | ₹35,343 | ₹1,683 |
The 63% column is only an illustration. Use the rate in the government's order once it is issued. To find your own pay level and full salary, use the 7th Pay Commission salary calculator.
How DA arrears work
When a hike is approved late, you receive the difference for every month since the effective date. For example, if a 3-point rise from 1 July is paid from the November salary, the arrears for July to October are:
- basic pay × 3% × 4 months;
- for a Level 7 employee on ₹44,900 basic, that is ₹1,347 × 4 = ₹5,388, before tax.
Arrears are taxable in the year you receive them. You may be able to claim relief for arrears relating to earlier years. The DA arrear calculation Excel sheet works out month-by-month arrears for you.
How DA is calculated: the 7th Pay Commission formula
DA follows the All India Consumer Price Index for Industrial Workers (AICPI-IW), published monthly by the Labour Bureau. For central government employees:
DA % = [(12-month average of AICPI-IW (base 2016 = 100) × 2.88 − 261.42) ÷ 261.42] × 100
How to read it:
- 2.88 is the linking factor that converts the 2016-base index to the old 2001 base.
- 261.42 is the index level built into 7th Pay Commission pay.
- The result is rounded down to a whole number.
That is why the July 2026 figure, based on the 12 months to June 2026, is expected to be about 63%.
DA and the 8th Pay Commission
The 8th Pay Commission has been set up to revise central government pay. Until its recommendations are accepted and implemented, DA continues to be revised every six months under the 7th Pay Commission formula.
When a new pay matrix is introduced, accumulated DA is normally absorbed into the new basic pay, and DA restarts from a low base. For the latest status, see 8th Pay Commission latest news.
DA for state government and private sector employees
- State government employees: each state issues its own DA orders, often following the Centre after a delay, at its own rate.
- Bank employees and CPSE staff: they follow their own wage settlements and DA schemes.
- Private sector: DA is part of the minimum wage (the variable DA, or VDA) and of salaries where the employer chooses to pay it. See DA in the private sector.
Frequently asked questions
What is the current DA rate for central government employees?
60% of basic pay, effective from 1 January 2026, approved by the Union Cabinet on 18 April 2026.
When will the July 2026 DA hike be announced?
No date has been announced. In recent years, the July instalment was approved between late September and October, with arrears paid from 1 July.
How much will DA increase from July 2026?
Price index data points to about 3 points, taking DA from 60% to 63%. This is a projection until the government issues its order.
Is DA given to pensioners?
Yes. Pensioners and family pensioners receive Dearness Relief (DR) at the same rate as DA, from the same date.
Is DA taxable?
Yes. DA is fully taxable as part of salary. DA arrears are taxed in the year you receive them, with relief possible for earlier years.
Will DA be merged with basic pay at 50%?
No. DA crossed 50% in January 2024 and was not merged. DA is normally absorbed only when a new Pay Commission's pay matrix is implemented.
Sources
- Cabinet decision: additional DA/DR instalment from 1 January 2026 (60%)
- The Tribune: Cabinet approves DA at 58% from 1 July 2025
- Outlook Money: July 2026 DA revision pending; rate remains 60%
Status as of 24 October 2026. This page will be updated when the July 2026 order is issued. Check the Department of Expenditure's DA order for the official rate.