DA hike approved: Central government employees to get 3% increase
New Delhi: The Union Cabinet on Wednesday, October 28, approved a 3-percentage-point increase in Dearness Allowance (DA) for central government employees. The revision is expected to take the DA rate from 60% to 63% of basic pay, providing additional financial support to employees amid rising living costs.
The decision follows the previous increase approved in April 2026, when the Cabinet raised DA by 2 percentage points, from 58% to 60%, with effect from January 1, 2026. The government revises DA twice a year, with changes generally taking effect from January and July.
Dearness Allowance is calculated as a percentage of an employee's basic pay. A 3-percentage-point increase would therefore add ₹540 a month for an employee with a basic salary of ₹18,000, ₹1,062 for someone earning ₹35,400 and ₹1,347 for an employee with a basic salary of ₹44,900. These figures represent the additional DA before any other applicable salary adjustments.
The revision is also relevant to central government pensioners, who receive Dearness Relief (DR) instead of DA. The corresponding DR increase is intended to help pensioners manage the impact of inflation on their purchasing power. The exact number of beneficiaries and the financial implications of the latest revision should be confirmed through the government's official announcement.
Employees are also likely to look for clarity on arrears. If the revised rate takes effect retrospectively from July 1, 2026, eligible employees could receive the difference between the old and revised rates for the applicable period. However, the effective date, arrears payment schedule and implementation details depend on the official order.
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What the DA hike means
How much more will employees receive?
The additional DA is calculated by applying the 3-percentage-point increase to basic pay.
Basic monthly pay | Additional DA per month |
|---|---|
₹18,000 | ₹540 |
₹25,000 | ₹750 |
₹35,400 | ₹1,062 |
₹44,900 | ₹1,347 |
These calculations show the increase in DA alone. The final change in take-home pay may differ depending on other salary components and applicable rules.
Will employees receive arrears from July?
The July 2026 revision was pending before the reported Cabinet approval. If the government makes the revised rate effective from July 1, eligible employees may receive arrears for the period covered by the order. The payment amount will depend on the employee's basic pay, eligibility and the period for which arrears are payable.
What is the difference between DA and DR?
- Dearness Allowance (DA): Paid to serving central government employees as a percentage of basic pay.
- Dearness Relief (DR): Paid to eligible pensioners to help offset the impact of inflation on pension income.
Both are revised periodically, but the final rates and implementation details must be checked against the relevant official orders.