DA Hike to 63% From July 2026: What Changes for Your Pay and Arrears
Short answer: The Union Cabinet approved a 3-point rise in Dearness Allowance (DA) and Dearness Relief (DR) on 28 October 2026, taking it from 60% to 63% of basic pay or pension, with effect from 1 July 2026. On a basic pay of ₹56,100, DA goes from ₹33,660 to ₹35,343, which is ₹1,683 more a month. The months before the new rate appears in your pay are paid as arrears.
What was decided
On 28 October 2026 the Union Cabinet approved an additional instalment of DA for central government employees and DR for pensioners, an increase of 3 percentage points over the existing 60%, effective 1 July 2026. Media reports put the cost at about ₹10,016 crore a year and the number of people covered at about 1.17 crore, with 48.54 lakh employees and 68.71 lakh pensioners. Those figures come from news reports, so check the official release. DA and DR are revised twice a year, from 1 January and 1 July.
New DA on common basic pay
| Basic pay | DA at 60% | DA at 63% | Rise per month | Four months of arrears |
|---|---|---|---|---|
| ₹18,000 | ₹10,800 | ₹11,340 | ₹540 | ₹2,160 |
| ₹35,000 | ₹21,000 | ₹22,050 | ₹1,050 | ₹4,200 |
| ₹56,100 | ₹33,660 | ₹35,343 | ₹1,683 | ₹6,732 |
| ₹1,00,000 | ₹60,000 | ₹63,000 | ₹3,000 | ₹12,000 |
| ₹1,44,200 | ₹86,520 | ₹90,846 | ₹4,326 | ₹17,304 |
The arrears column assumes four months, July to October, were paid at the old rate. The real number depends on the month your office pays the new rate, so check your pay slip. Use the DA calculator for your own basic pay or pension.
An example for pensioners
A pensioner with a basic pension of ₹35,000 received ₹21,000 of DR at 60%. At 63% the DR is ₹22,050, so total pension before tax rises from ₹56,000 to ₹57,050. The same arrears logic applies: the increase is ₹1,050 a month, so four months are ₹4,200 if the new rate was paid from November.
How to check your pay slip
- Find your basic pay (or basic pension) on the slip. DA is worked out on this figure only, not on HRA or other allowances.
- Multiply it by 0.63. The result should match the DA or DR line once the new rate is applied.
- Look for a separate arrears line. It may come in one month or be split across two. If the amounts do not match, ask your drawing and disbursing officer or your pension-paying bank.
Who gets it
Serving central government employees receive DA, and pensioners and family pensioners receive DR at the same 63%. State government employees are not covered by this decision. Each state decides its own DA, so check your state’s order.
What about HRA?
HRA for central government employees is already at its highest 7th Pay Commission rates of 30%, 20% and 10% for X, Y and Z cities, because DA crossed 50% some time ago. The rise to 63% does not change those percentages. See the government HRA calculator.
Is the extra DA taxable?
Yes. DA is part of your salary, so the increase and any arrears are taxed at your slab rate. Arrears for earlier years can be spread across the years they belong to by claiming relief under section 89 when you file. Use the income tax calculator to see what the extra DA does to your tax.
What comes next
The next DA revision is due from 1 January 2027 and is normally announced a few months later. The 8th Pay Commission is a separate matter. When we last checked, no fitment factor or new pay matrix had been notified, so treat any 8th CPC pay figure you see online as an estimate. When a new commission’s pay scales take effect, DA is merged into basic pay and starts again from zero.
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Frequently asked questions
What is the new DA rate?
DA and DR are 63% of basic pay or basic pension from 1 July 2026, up from 60%, following Cabinet approval on 28 October 2026.
Will I get arrears?
Yes. The new rate applies from 1 July 2026, so the difference for the months paid at 60% is paid as arrears. The number of months depends on when your office releases the new rate.
Does the DA hike apply to state employees?
No. This decision covers central government employees and pensioners. State governments announce their own DA.
When is the next DA revision?
From 1 January 2027, usually announced a few months later.
Sources: SCC Online — Cabinet approves 3% DA/DR hike from 1 July 2026 · Department of Expenditure, Ministry of Finance · PIB — Press Information Bureau