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DA Hike: How It Changes Your Salary (With Examples)

How Dearness Allowance works for central government employees, the 63% rate from July 2026, how to calculate your increase and arrears, and where the 8th Pay Commission stands.

6 min read · Published 22 October 2026 · Updated

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Short answer

DA (Dearness Allowance) rises with inflation to protect your pay. Each revision increases your monthly pay and, when it is announced late, gives you arrears.

Last checked · 3 key figures from the fact register

Key facts

Key facts on this page with their source and the date each was checked
FactValueSourceDate checked
Dearness Allowance now63% of basic pay from 1 July 2026 Official sourcePIB, 28 Oct 2026: Cabinet approves Dearness Allowance to Central Government employees and Dearness Relief to Pensioners (w.e.f. 01.07.2026) (opens in a new tab)
DA from 1 July 202663% from 1 July 2026 Official sourcePIB, 28 Oct 2026: Cabinet approves Dearness Allowance to Central Government employees and Dearness Relief to Pensioners (w.e.f. 01.07.2026) (opens in a new tab)
8th Pay CommissionConstituted 3 Nov 2025; report due within 18 months Official sourceGazette of India Extraordinary, 3 Nov 2025: Resolution constituting the Eighth Central Pay Commission (hosted on 8cpc.gov.in) (opens in a new tab)

How DA works

DA is a percentage of your basic pay. The Centre revises it twice a year, from 1 January and 1 July, based on the price index. The order usually comes a few months later, and the new rate then applies with arrears from the effective date.

The latest rate

DA went from 60% to 63% of basic pay with effect from 1 July 2026. The Union Cabinet approved it on 28 October 2026 (PIB) and the Department of Expenditure issued its Office Memorandum (No. 1/2(i)/2026-E.II(B)) on 29 October 2026. The previous rise, from 58% to 60%, applied from 1 January 2026 (Cabinet 18 April 2026, order 22 April 2026). Read the full story in DA hike July 2026: approved at 63%.

Worked example

Try your own figures in the DA arrears calculator.

What else changes with DA

Some allowances rise automatically with DA. For example, the Children Education Allowance and hostel subsidy rise by 25% each time DA rises by a further 50%. See CEA and hostel subsidy. Check your payslip for any other allowance linked to DA.

The 8th Pay Commission

The 8th Central Pay Commission was constituted by a resolution dated 3 November 2025, chaired by Justice Ranjana Prakash Desai, with 18 months to report. No fitment factor, effective date or decision on merging DA has been set. Figures you see online are estimates, and some are union demands rather than findings. See the live 8th Pay Commission tracker, the complete guide and DA merger or DA reset.

Steps to check your own pay

  1. Open your latest payslip and note basic pay and the DA percentage.
  2. Compare with the current official DA rate.
  3. If the rate is old, ask your accounts section when arrears will be paid.
  4. Keep a record of the order number.

Common mistakes

  • Planning around an 8th Pay Commission number that is only an estimate.
  • Assuming the January 2027 instalment has been approved before an order is issued.
  • Confusing DA for serving employees with dearness relief for pensioners.

Official sources

FAQ

What is the current DA rate?

63% of basic pay from 1 July 2026, up from 60%. The Union Cabinet approved it on 28 October 2026 and the Department of Expenditure issued its Office Memorandum on 29 October 2026.

Has the January 2027 instalment been announced?

No. It is due from 1 January 2027 and is usually decided months later. See the January 2027 DA tracker, which labels every estimate as unofficial.

How do I calculate arrears?

Basic pay × (new DA% − old DA%) ÷ 100 × months of delay.

Will DA be merged into basic pay?

There is no official decision. Merger is usually considered when a new Pay Commission revises pay.

What is the fitment factor?

A multiplier applied to basic pay when pay is revised. The 7th Pay Commission used 2.57. For the 8th, no fitment factor or effective date has been set; any figure online is an estimate.

Written by

PerkNavigate Editorial Team

Facts checked against official orders on 22 October 2026.

Every guide is checked against official sources. How we verify perks.

Pay levels and roles

Salary scenarios for the 8th Pay Commission, by level and by role. Every figure is a scenario, not an official number.

By pay level

By role

The full 7th CPC pay matrix

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