DA and DR hike 2026: How much will monthly pay and pensions increase for Central Government staff?
New Delhi: The Ministry of Finance has officially sanctioned a 2% increase in Dearness Allowance (DA) for Central Government employees. Effective from January 1, 2026, the rate will rise from 58% to 60% of basic pay.
This revision, approved by the President and finalised in an April 22 announcement, follows the proposal dated October 6, 2025. The adjustment is a standard measure to help employees and retirees manage the impact of inflation and rising living costs.
Massive reach: Over 1.1 crore beneficiaries
The impact of this hike is vast, providing financial relief to millions across the country
- 50 lakh Central Government employees, including civilian and defense personnel.
- 65 lakh retired pensioners, including those from the defense services.
While the Department of Expenditure has issued the primary memorandum, the Ministry of Defence and Ministry of Railways will release separate orders specifically for armed forces and railway personnel, respectively.
Salary increase table: How Much More Will You Get?
The following table breaks down the monthly increase based on the established pay matrix levels. These figures represent the Basic Pay + DA component.
| Pay Level | Basic Pay | Current Salary (58% DA) | New Salary (60% DA) | Monthly Increase |
| Level 1 | ₹18,000 | ₹28,440 | ₹28,800 | ₹360 |
| Level 2 | ₹19,900 | ₹31,442 | ₹31,840 | ₹398 |
| Level 3 | ₹21,700 | ₹34,286 | ₹34,720 | ₹434 |
| Level 4 | ₹25,500 | ₹40,290 | ₹40,800 | ₹510 |
| Level 5 | ₹29,200 | ₹46,136 | ₹46,720 | ₹584 |
| Level 6 | ₹35,400 | ₹55,932 | ₹56,640 | ₹708 |
| Level 7 | ₹44,900 | ₹70,942 | ₹71,840 | ₹898 |
| Level 8 | ₹47,600 | ₹75,208 | ₹76,160 | ₹952 |
| Level 9 | ₹53,100 | ₹83,898 | ₹84,960 | ₹1,062 |
| Level 10 | ₹56,100 | ₹88,638 | ₹89,760 | ₹1,122 |
| Level 11 | ₹67,700 | ₹1,06,966 | ₹1,08,320 | ₹1,354 |
| Level 12 | ₹78,800 | ₹1,24,504 | ₹1,26,080 | ₹1,576 |
| Level 13 | ₹1,23,100 | ₹1,94,498 | ₹1,96,960 | ₹2,462 |
| Level 13A | ₹1,31,100 | ₹2,07,138 | ₹2,09,760 | ₹2,622 |
| Level 14 | ₹1,44,200 | ₹2,27,836 | ₹2,30,720 | ₹2,884 |
| Level 15 | ₹1,82,200 | ₹2,87,876 | ₹2,91,520 | ₹3,644 |
| Level 16 | ₹2,05,400 | ₹3,24,532 | ₹3,28,640 | ₹4,108 |
| Level 17 | ₹2,25,000 | ₹3,55,500 | ₹3,60,000 | ₹4,500 |
| Level 18 | ₹2,50,000 | ₹3,95,000 | ₹4,00,000 | ₹5,000 |
Important details on calculation
- Rounding policy: If the DA calculation results in a fraction of 50 paise or more, it is rounded up to the next rupee. Fractions under 50 paise are ignored.
- Definition of basic pay: As per the Ministry, "Basic Pay" refers specifically to the pay drawn in the prescribed Level of the Pay Matrix. It does not include special pay or other additional remunerations.
- Accounting: DA remains a distinct element of the salary and is not treated as "pay" under fundamental rules.