The latest DA hike
The Union Cabinet approved a 3 percentage point increase in DA and DR, from 60% to 63% of basic pay or pension, effective 1 July 2026. Because the decision came in late October, July–October is paid as arrears, typically with the November salary or pension.
Monthly DA = basic pay × DA rate Monthly increase = basic pay × (new rate − old rate) Arrears = monthly increase × months since the effective date
| Basic pay | DA at 63% | Increase per month | Arrears (4 months) |
|---|---|---|---|
| ₹18,000 | ₹11,340 | ₹540 | ₹2,160 |
| ₹50,000 | ₹31,500 | ₹1,500 | ₹6,000 |
Recent DA rates (7th CPC)
| Effective from | DA / DR |
|---|---|
| 1 July 2024 | 53% |
| 1 January 2025 | 55% |
| 1 July 2025 | 58% |
| 1 January 2026 | 60% |
| 1 July 2026 | 63% |
How DA is decided
DA is revised twice a year — for January and July — to compensate for inflation. The rate is based on the 12-month average of the All-India Consumer Price Index for Industrial Workers (AICPI-IW) published by the Labour Bureau. The government usually announces the January revision around March and the July revision around October, so arrears are common.
What else changes with DA
- HRA: when DA crossed 50% in January 2024, HRA rose to 30% / 20% / 10% of basic for X / Y / Z cities, and several other allowances and the gratuity ceiling were raised by 25%.
- Pensioners: dearness relief (DR) on basic pension moves in step with DA.
- 8th Pay Commission: when it is implemented, accumulated DA is expected to merge into basic pay and reset to zero — see the 8th Pay Commission salary calculator.
Tax
DA is fully taxable as salary (and DR as pension income). For HRA exemption purposes, DA that counts for retirement benefits is included in "salary" — see the HRA calculator.