What changed in January 2026
Dearness Allowance for Central Government employees under the 7th Pay Commission has increased by 2%, moving from 58% to 60%, effective 1 January 2026.
This increase is confirmed based on AICPI-IW data, which crossed the threshold required for the next DA slab. While the formal government notification typically arrives later, the percentage itself is now clear.
Why DA moved from 58% to 60%
DA is revised twice a year based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW).
- AICPI-IW level considered: Average of July–December 2025
- Index outcome: The cumulative index rose to 148.2
- Result: DA calculation crossed the next 2% slab
Under the 7th CPC formula, DA increases in steps of 2% once the index average clears the required band. The November and December 2025 readings were strong enough to push DA to 60%.
This is a data-driven outcome, not an estimate.
Calculate Your Revised Salary After 2% DA Hike
Use this calculator to find your updated salary under the 7th Pay Commission after the Dearness Allowance increase from 58% to 60%, effective January 2026. Simply enter your pay level and basic pay to see the exact impact.
Calculate New 7th CPC SalaryNote: DA at 60% is effective from 1 January 2026. Arrears will be payable once the official government notification is issued.
How to calculate your new DA (simple method)
DA is calculated only on Basic Pay.
Formula:
DA amount = Basic Pay × 60%
Increase due to January 2026 hike:
Additional DA = Basic Pay × 2%
That 2% is the extra amount you will see compared to your December 2025 salary.
Salary impact: level-wise comparison
Below is a clear comparison for commonly searched pay levels. Figures show monthly DA only, not total gross salary.
| Pay Level | Basic Pay (₹) | DA @ 58% (₹) | DA @ 60% (₹) | Monthly Increase (₹) |
|---|---|---|---|---|
| Level 1 | 18,000 | 10,440 | 10,800 | 360 |
| Level 6 | 35,400 | 20,532 | 21,240 | 708 |
| Level 10 | 56,100 | 32,538 | 33,660 | 1,122 |
Key point:
The increase looks small in percentage terms, but it compounds across HRA-linked allowances and arrears.
When will the official order and arrears be paid?
- Effective date: 1 January 2026
- Cabinet approval & notification: Usually March or April
- Arrears payment: Commonly released with the first salary after notification
Employees will receive arrears for January and February (and sometimes March) once the order is issued.
What this means for take-home pay
- DA increase is fully taxable
- No change to basic pay or pay level
- Gross salary rises immediately once implemented
- Arrears provide a one-time cash inflow
For employees close to retirement, this DA rate also affects gratuity and leave encashment calculations until the next revision.
Current status summary (clear and verified)
- DA rate: Confirmed at 60%
- Basis: AICPI-IW average touching 148.2
- Nature: Regular biannual DA revision
- Notification: Pending, expected in the usual cycle
- Arrears: Payable from January 2026
No assumptions. No provisional figures. This hike is anchored in published index data.
If you want to estimate your exact post-DA gross salary including HRA and other allowances, use your current basic pay and apply the same 2% delta across DA-linked components.