The Central Government has approved a 3-percentage-point increase in Dearness Allowance (DA) for eligible central government employees, raising the rate from 60% to 63% of basic pay. The revision is effective from July 1, 2026.
The Union Cabinet approved the increase on October 28, 2026. The Department of Expenditure issued the corresponding DA revision order on October 29, 2026. The decision also provides for a corresponding increase in Dearness Relief (DR) for eligible pensioners.
Employees and pensioners can use the information below to understand the approved revision, calculate the illustrative monthly increase and check the official government notifications.
DA Hike 2026: Latest Confirmed Update
The approved revision increases DA from 60% to 63%, representing an increase of three percentage points. The revised rate is effective from July 1, 2026, under the applicable Seventh Central Pay Commission framework.
According to the Press Information Bureau announcement dated October 28, 2026, the decision was approved by the Union Cabinet chaired by Prime Minister Narendra Modi.
The Department of Expenditure's DA revision order was published on October 29, 2026.
Key details of the DA revision
- Previous rate: 60% of basic pay.
- New approved rate: 63% of basic pay.
- Increase: 3 percentage points.
- Effective date: July 1, 2026.
- Cabinet approval: October 28, 2026.
- Official DA order: October 29, 2026.
How Many Employees and Pensioners Will Benefit?
The government estimates that approximately 48.54 lakh central government employees and 68.71 lakh pensioners will benefit from the DA and DR revision.
The combined annual financial impact of the increase is estimated at ₹10,016.10 crore. This figure covers the additional expenditure on both Dearness Allowance and Dearness Relief.
The figures are based on the government's official Cabinet announcement.
DA Salary Calculation 2026: How Much Will You Receive?
The additional monthly DA resulting from this revision is calculated as 3% of eligible basic pay. The table below compares the previous 60% rate with the revised 63% rate.
| Basic Pay | DA at 60% | DA at 63% | Additional Monthly DA |
|---|---|---|---|
| ₹18,000 | ₹10,800 | ₹11,340 | ₹540 |
| ₹25,000 | ₹15,000 | ₹15,750 | ₹750 |
| ₹35,000 | ₹21,000 | ₹22,050 | ₹1,050 |
| ₹50,000 | ₹30,000 | ₹31,500 | ₹1,500 |
| ₹75,000 | ₹45,000 | ₹47,250 | ₹2,250 |
| ₹1,00,000 | ₹60,000 | ₹63,000 | ₹3,000 |
DA hike calculation formula
Additional monthly DA = Eligible basic pay × 3 ÷ 100
For example, an employee with basic pay of ₹50,000 would receive ₹30,000 as DA at the previous 60% rate and ₹31,500 at the revised 63% rate.
The difference is ₹1,500 per month before applicable deductions and payroll adjustments.
These examples illustrate the calculation method. Individual payments depend on eligible basic pay and the applicable service and payroll rules.
DA Arrears 2026: What Employees Should Know
The revised DA rate is effective from July 1, 2026. Employees eligible for the increase may receive arrears for applicable previous months if the revised amount has not already been paid.
For an employee with basic pay of ₹50,000, the additional DA under the revised rate is ₹1,500 for each eligible month.
| Illustrative Eligible Months | Additional DA per Month | Illustrative Total |
|---|---|---|
| 1 month | ₹1,500 | ₹1,500 |
| 2 months | ₹1,500 | ₹3,000 |
| 3 months | ₹1,500 | ₹4,500 |
| 4 months | ₹1,500 | ₹6,000 |
| 5 months | ₹1,500 | ₹7,500 |
| 6 months | ₹1,500 | ₹9,000 |
Important: The table is an illustration, not confirmation of the arrears period or an individual payment date. Actual arrears depend on eligible months, basic pay, payroll records and the applicable government instructions.
Employees should contact their department's accounts or payroll office to confirm how the revised rate will be applied to their salary and whether any arrears remain payable.
Dearness Relief 2026: What Pensioners Need to Know
The Cabinet decision also provides for an increase in Dearness Relief for eligible pensioners. DR serves a purpose similar to DA, helping eligible pensioners manage the impact of inflation on their pension income.
Under the approved revision, the rate increases from 60% to 63%, effective July 1, 2026, subject to the applicable pension rules and orders.
For example, if an eligible pensioner's basic pension is ₹40,000, DR at 60% would be ₹24,000, while DR at 63% would be ₹25,200. The illustrative difference is ₹1,200 per month before applicable adjustments.
The actual amount payable depends on the pensioner's circumstances and the applicable rules. Pensioners should consult their pension disbursing authority for individual payment details.
Where to Check the Official DA Hike Order
Employees and pensioners should rely on official government notifications to verify the approved rate, effective date and applicable payment instructions.
- Press Information Bureau (PIB): Cabinet announcements and official government press releases.
- Department of Expenditure: DA revision orders and official memoranda.
- Prime Minister's Office: Official news and government decision updates.
When checking the latest revision, look for the DA order effective July 1, 2026, dated October 29, 2026. Verify the applicable pay structure and the instructions relevant to your employment or pension status.
DA Hike 2026 and the 8th Pay Commission
The DA revision is separate from the Eighth Central Pay Commission process. A routine DA increase adjusts the applicable allowance, while a pay commission considers broader pay, allowance and pension matters under its mandate.
The increase from 60% to 63% does not, by itself, confirm a new basic-pay structure, a fitment factor or an implementation date for revised pay scales. Any such development should be verified through a separate official government announcement.
Conclusion
The latest DA Hike 2026 update confirms that the Central Government has approved a 3-percentage-point increase, taking DA from 60% to 63% of basic pay for eligible employees under the applicable Seventh Central Pay Commission framework.
The revision is effective from July 1, 2026, and the corresponding DR increase applies to eligible pensioners. For an employee with basic pay of ₹50,000, the additional monthly DA works out to ₹1,500 before deductions.
Eligible arrears may be payable for previous months, depending on the applicable government instructions and payroll calculations. Employees and pensioners should consult official notifications and their respective departments for individual payment details.
