DA Hike Calculator
DA Hike Calculator
What a dearness allowance (DA) or dearness relief (DR) increase adds to your monthly pay or pension, and the arrears for the months since it took effect — for government employees and pensioners.
Increase from the DA hike
Basic pay $18,000 (7th CPC Level 1), DA 58% → 60% from 1 January 2026, 3 months of arrears
DA increase and arrears
- B
- basic pay in the pay matrix, or the original basic pension
- old, new
- the DA or DR rates, in % of B
- months
- months from the effective date until the new rate is paid
Worked example
Basic pay $18,000 (7th CPC Level 1), DA 58% → 60% from 1 January 2026, 3 months of arrears
Old DA: 18,000 × 58% = $10,440
New DA: 18,000 × 60% = $10,800
Increase = 18,000 × 2% = $360 a month
Arrears for January to March = 360 × 3 = $1,080
What 2 points of DA (58% → 60%) add at some basic figures
| Basic pay or pension | Increase a month | Increase a year |
|---|---|---|
| $9,000 | $180 | $2,160 |
| $18,000 | $360 | $4,320 |
| $35,400 | $708 | $8,496 |
| $56,100 | $1,122 | $13,464 |
| $78,800 | $1,576 | $18,912 |
How DA and DR are worked out
Dearness allowance (DA) for serving employees and dearness relief (DR) for pensioners are paid as a percentage of basic pay or basic pension, to offset price rises. The Central Government revises the rate twice a year, for January and for July, under the formula accepted from the 7th Central Pay Commission, which links it to the Consumer Price Index for Industrial Workers. The announcement usually comes a few months after the date the rate takes effect, so the increase for the months in between is paid as arrears.
The latest instalment: the Cabinet approved DA and DR of 60% from 1 January 2026, up two points from 58%, on 18 April 2026. The rate from 1 July 2026 had not been announced when this page was checked (22 September 2026); when it is, enter 60 as the old rate and the new figure. On a basic of $18,000 — the first cell of Level 1 in the 7th CPC pay matrix — the two points are worth $360 a month; at $56,100, the start of Level 10, $1,122. The increase depends only on basic pay, which is why a hike means more in rupees at higher levels.
Pensioners: DR is calculated on the original basic pension before commutation, not on the reduced pension that is paid after commutation (Department of Pension and Pensioners’ Welfare, 25 October 2022). Enter the full basic pension. For the commuted lump sum itself, see the pension commutation calculator.
The 8th Pay Commission. The Cabinet approved its terms of reference on 28 October 2025, with recommendations due within 18 months of its constitution; it was taking submissions until 30 April 2026. Until its report is accepted and implemented, pay stays in the 7th CPC matrix and DA keeps being revised under the 7th CPC formula. A new pay commission usually folds accumulated DA into a new basic, so the DA percentage restarts from a lower figure — this page cannot predict that.
State governments set their own DA and DR rates and dates; enter your State’s rates. Arrears here assume your basic was the same throughout; if an annual increment fell in the arrears months, work each stretch separately. DA is taxable as salary, and DR as pension. For a raise in pay generally, try the salary hike calculator; for what prices have done to your pay, the inflation calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
What is the current DA rate for Central Government employees?
60% of basic pay from 1 January 2026, approved by the Cabinet on 18 April 2026. The same rate applies as DR to Central Government pensioners. The July 2026 rate had not been announced as of 22 September 2026.
How is the DA increase calculated?
Basic pay × the change in the rate. On a basic of $18,000, 58% to 60% adds $360 a month; three months of arrears come to $1,080.
Is DR on pension calculated before or after commutation?
On the original basic pension before commutation (DoPPW OM of 25 October 2022).
Has the 8th Pay Commission changed DA yet?
No. Its terms of reference were approved on 28 October 2025 and it has 18 months from its constitution to report. Until its recommendations are implemented, DA follows the 7th CPC formula.
Related calculators
References
- Press Information Bureau. “Cabinet approves additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2026”, 18 April 2026: an increase of 2% over the existing rate of 58% of basic pay/pension, “in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission”; about 50.46 lakh employees and 68.27 lakh pensioners.
- Press Information Bureau. “Cabinet approves Terms of Reference of 8th Central Pay Commission”, 28 October 2025: recommendations within 18 months of the date of its constitution. PIB, “8th Central Pay Commission invites representations from stakeholders”, 5 March 2026: submissions accepted up to 30 April 2026.
- Ministry of Finance (Department of Expenditure). Central Civil Services (Revised Pay) Rules, 2016, notified 25 July 2016: the 7th CPC pay matrix, whose Level 1 starts at ₹18,000 a month; dearness allowance is a percentage of basic pay in the matrix.
- Department of Pension & Pensioners’ Welfare. OM No. 42/15/2022-P&PW(D)/1, 25 October 2022: dearness relief “is payable on the original basic pension before commutation”.