Quick answer: The Department of Expenditure has raised DA for central government employees from 60% to 63% of basic pay with effect from 1 July 2026, by Office Memorandum dated 29 October 2026. Your arrears are 3% of your basic pay for every month since July that was paid at 60%, plus 3% of your transport allowance. For a Level 1 employee at entry pay that is ₹540 a month, or ₹2,160 for July to October. The order does not fix a date for paying arrears; most offices will pay them with the first salary processed at 63%.
The Cabinet approved the increase on 28 October and the Finance Ministry issued the order the next day, so October salaries in most offices were already processed at 60%. That leaves three or four months of difference to be paid as arrears. This guide gives the exact amount for every pay level, shows the part most calculators miss (DA on transport allowance), and explains what is deducted from the arrear before it reaches your account.
What the order says
Last updated: 3 November 2026. Based on the Department of Expenditure OM of 29 October 2026 and the Cabinet decision of 28 October 2026.
| Point | Position |
|---|---|
| Order | Department of Expenditure OM No. 1/2(i)/2026-E.II(B), dated 29 October 2026 |
| New rate | 63% of basic pay, up from 60% |
| Effective from | 1 July 2026 |
| "Basic pay" means | Pay in the prescribed level of the 7th CPC pay matrix. It does not include special pay or other types of pay. |
| Status of DA | A distinct element of pay; not treated as "pay" under FR 9(21) |
| Rounding | Fractions of 50 paise and above go to the next rupee; less than 50 paise is ignored |
| Who it covers | Central government civilian employees, including civilians paid from the Defence Services Estimates. Armed forces and railway employees get separate orders from their ministries. |
| Arrears payment date | Not specified in the order |
| Cost | ₹10,016 crore, as stated in the Cabinet release of 28 October 2026 |
The full text of the OM is reproduced by IGECorner; the original is on the Department of Expenditure website under DA orders. Pensioners get the same increase as Dearness Relief, but through a separate order from the Department of Pension and Pensioners' Welfare, which had not been published at the time of writing.
Three months or four?
Central government salaries are paid on the last working day of the month. The order came on 29 October, so whether your October salary already carries 63% depends on whether your pay office processed it after the order arrived. In practice:
- October paid at 60%: your arrears cover July, August, September and October, four months, normally paid with the November salary.
- October paid at 63%: your arrears cover July to September, three months.
Your October payslip settles it: compare the DA line with 63% of your basic pay. The table below shows both cases.
Level-wise DA arrears at entry pay
The arrear for each month is the difference between DA at 63% and DA at 60%, each rounded as the order requires. Because every amount in the 7th CPC pay matrix is a multiple of ₹100, the difference on basic pay is exactly 3% for every cell.
| Pay level | Entry basic pay | DA at 63% (per month) | Increase per month | Arrears, July–Sept | Arrears, July–Oct |
|---|---|---|---|---|---|
| Level 1 | ₹18,000 | ₹11,340 | ₹540 | ₹1,620 | ₹2,160 |
| Level 2 | ₹19,900 | ₹12,537 | ₹597 | ₹1,791 | ₹2,388 |
| Level 3 | ₹21,700 | ₹13,671 | ₹651 | ₹1,953 | ₹2,604 |
| Level 4 | ₹25,500 | ₹16,065 | ₹765 | ₹2,295 | ₹3,060 |
| Level 5 | ₹29,200 | ₹18,396 | ₹876 | ₹2,628 | ₹3,504 |
| Level 6 | ₹35,400 | ₹22,302 | ₹1,062 | ₹3,186 | ₹4,248 |
| Level 7 | ₹44,900 | ₹28,287 | ₹1,347 | ₹4,041 | ₹5,388 |
| Level 8 | ₹47,600 | ₹29,988 | ₹1,428 | ₹4,284 | ₹5,712 |
| Level 9 | ₹53,100 | ₹33,453 | ₹1,593 | ₹4,779 | ₹6,372 |
| Level 10 | ₹56,100 | ₹35,343 | ₹1,683 | ₹5,049 | ₹6,732 |
| Level 11 | ₹67,700 | ₹42,651 | ₹2,031 | ₹6,093 | ₹8,124 |
| Level 12 | ₹78,800 | ₹49,644 | ₹2,364 | ₹7,092 | ₹9,456 |
| Level 13 | ₹1,23,100 | ₹77,553 | ₹3,693 | ₹11,079 | ₹14,772 |
| Level 13A | ₹1,31,100 | ₹82,593 | ₹3,933 | ₹11,799 | ₹15,732 |
| Level 14 | ₹1,44,200 | ₹90,846 | ₹4,326 | ₹12,978 | ₹17,304 |
| Level 15 | ₹1,82,200 | ₹1,14,786 | ₹5,466 | ₹16,398 | ₹21,864 |
| Level 16 | ₹2,05,400 | ₹1,29,402 | ₹6,162 | ₹18,486 | ₹24,648 |
| Level 17 | ₹2,25,000 | ₹1,41,750 | ₹6,750 | ₹20,250 | ₹27,000 |
| Level 18 | ₹2,50,000 | ₹1,57,500 | ₹7,500 | ₹22,500 | ₹30,000 |
These are entry-pay figures. If your basic pay is higher than the first cell of your level, use your own number: monthly increase = basic pay × 3%, and arrear = monthly increase × number of months. The DA arrears calculator does this for any basic pay.
If your basic pay changed between July and October, for example after your annual increment on 1 July or a promotion, work out each month separately on the basic pay actually drawn in that month. A single multiplication will understate or overstate the arrear.
The part most calculators miss: DA on transport allowance
Transport allowance under the 7th CPC is paid as a fixed amount plus DA on it, at the same DA rate as on basic pay. So the move from 60% to 63% also raises your transport allowance, and that difference is part of your arrears. The rates are those set by the Finance Ministry's 2017 order on transport allowance (summary).
| Pay level | Transport allowance (higher TPTA cities) | Extra DA on it per month | Transport allowance (other places) | Extra DA on it per month |
|---|---|---|---|---|
| Level 9 and above | ₹7,200 | ₹216 | ₹3,600 | ₹108 |
| Level 3 to 8 | ₹3,600 | ₹108 | ₹1,800 | ₹54 |
| Level 1 and 2 | ₹1,350 | ₹41 | ₹900 | ₹27 |
Employees in Levels 1 and 2 drawing basic pay of ₹24,200 or more get the Level 3 to 8 rate. Higher TPTA cities include Delhi, Mumbai, Kolkata, Chennai, Bengaluru and Hyderabad, among others listed in the order. Employees with disabilities who draw transport allowance at double rate get double the extra DA. For ₹1,350, DA at 63% is ₹850.50, which rounds to ₹851; at 60% it is ₹810, so the monthly difference is ₹41.
Worked example: Level 6 in Bengaluru
Assumptions: basic pay ₹35,400 (Level 6 entry) throughout July to October, posted in Bengaluru (a higher TPTA city), covered by NPS, October salary paid at 60%.
| Item | Calculation | Amount |
|---|---|---|
| Extra DA on basic pay, per month | ₹22,302 − ₹21,240 | ₹1,062 |
| Extra DA on transport allowance, per month | ₹2,268 − ₹2,160 | ₹108 |
| Total increase per month | ₹1,062 + ₹108 | ₹1,170 |
| Gross arrears, July to October | ₹1,170 × 4 | ₹4,680 |
| Employee NPS contribution on the DA arrear | 10% of (₹1,062 × 4) | about ₹425 |
| Arrears before income tax | ₹4,680 − ₹425 | about ₹4,255 |
The same 10% employee deduction applies if you are under the Unified Pension Scheme, because both schemes take contributions on basic pay plus DA. Under NPS the government also adds its own contribution on the DA arrear to your account. Transport allowance is not part of the base for these contributions, which is why only the DA on basic pay is used for the deduction. If you are under the old pension scheme with GPF, there is no compulsory deduction on the arrear. Your DDO's arrear bill is the final word on the exact deduction and rounding.
Income tax on the arrears
The arrears relate to July to October 2026 and are paid in the same tax year, 2026-27. They are simply added to your salary income for the year, and your employer recalculates TDS for the remaining months. Because the income is not being moved from one tax year to another, the relief for salary arrears received late does not come into play here. Use the income tax calculator to see whether the extra DA changes your tax for the year.
What does not change
- HRA stays at 30%, 20% or 10% of basic pay. Under the government's decision on 7th CPC allowances, HRA was revised when DA crossed 25% and again when it crossed 50%. There is no further step linked to 63%.
- Basic pay does not change. DA remains a separate component; the order says so expressly.
- The 8th Pay Commission is unaffected. This is a routine half-yearly revision under the 7th CPC. See 8th Pay Commission at one year for where that process stands.
Checklist for employees and pay offices
- 1. Check OctoberCompare the DA on your October payslip with 63% of basic pay to know whether you are owed three months or four.
- 2. CalculateUse 3% of basic pay per month, month by month if your pay changed, plus the extra DA on transport allowance from the table above.
- 3. Check the deductionNPS and UPS employees should see 10% of the DA-on-basic arrear deducted; GPF employees should not.
- 4. Match the billCompare your figure with the arrear in your next salary slip and raise any difference with your DDO with your workings attached.
Check your own arrears in a minute. Enter your basic pay in the free DA arrears calculator, or see your new monthly DA with the DA calculator. No app, no download, no login.
Frequently asked questions
When will the DA arrears be paid?
The order does not set a date. Arrears are paid when your pay office processes the revised rate, usually with the first salary drawn at 63%. For most offices that is the November 2026 salary, paid at the end of November.
Do armed forces and railway employees get the same arrears?
The rate is the same, but the order says separate orders will be issued by the Ministry of Defence and the Ministry of Railways. Their pay offices process arrears after those orders.
Is DA calculated on special pay or deputation allowance?
No. The order defines basic pay as pay in the prescribed level of the pay matrix and excludes special pay and other types of pay.
Does this apply to state government employees?
No. The order covers central government employees. Each state announces DA for its own employees separately, at its own rate and from its own date.
Related: dearness allowance for central government employees, DA arrear calculation Excel sheet and 8th Pay Commission at one year.
Position as of 3 November 2026. Sources: Department of Expenditure OM No. 1/2(i)/2026-E.II(B) dated 29 October 2026; PIB release of 28 October 2026; Finance Ministry OM of 7 July 2017 on transport allowance; Government decision on 7th CPC allowances. Amounts are calculated at entry pay for illustration; your arrear depends on the basic pay you actually drew each month. General information, not legal or financial advice.