As of October 2026, the dearness allowance (DA) for central government employees is 60% of basic pay, and for pensioners dearness relief (DR) is 60% of basic pension. This rate has applied from 1 January 2026. The next revision, due from 1 July 2026, had not been officially announced when we last checked.
Quick facts (as of October 2026)
| Item | Status |
|---|---|
| Current DA/DR rate | 60% of basic pay/pension |
| Last revision | 2 percentage points, from 58% to 60%, effective 1 January 2026 (approved by the Union Cabinet on 18 April 2026) |
| Next revision | Due from 1 July 2026; not announced as of 23 October 2026 according to news reports |
| Expected rate (estimate only) | About 63%, per media reading of index data; not official |
What is dearness allowance?
DA is an extra amount paid on top of basic pay to offset inflation. If your basic pay is Rs 50,000 and DA is 60%, the DA part is Rs 30,000 each month. Pensioners get the same idea under the name dearness relief.
How is DA calculated?
The government links DA to the All-India Consumer Price Index for Industrial Workers (AICPI-IW), published monthly by the Labour Bureau. Under the 7th Pay Commission formula, the average of the last 12 months of the index is compared with a base value, and the percentage rise gives the DA rate. As commonly published, the base is 261.42 for the 2016=100 series. The result is rounded down to a whole number, which is why a calculation of about 63.75% becomes 63% in news estimates. The government decides and notifies the final figure.
Hikes in recent years
| Effective from | New DA rate | Note |
|---|---|---|
| 1 January 2024 | 50% | Widely reported |
| 1 July 2024 | 53% | Announced in autumn 2024 |
| 1 January 2025 | 55% | Announced in spring 2025 |
| 1 July 2025 | 58% | Approved 1 October 2025; about 49.19 lakh employees and 68.72 lakh pensioners benefitted |
| 1 January 2026 | 60% | Approved by the Union Cabinet on 18 April 2026 |
Rates for 2024 and early 2025 are from widely reported earlier announcements; the 2025 and 2026 rows are confirmed by sources we read. Verify against the Department of Expenditure order if you need exact figures.
When is the next revision expected?
DA is revised twice a year, effective 1 January and 1 July, but the announcement usually comes months later. For July revisions, the approval has often come around late September to October, and the January revision around March to April. In 2025, the July revision was approved on 1 October. As of mid-October 2026, news reports said the 14 October Cabinet meeting did not announce it, and that the order may come after Dussehra. A report dated 23 October 2026 (OfficeNewz) says the 21 October meeting also had no DA decision, and some reports point to a Cabinet meeting around 28 October, which the government has not confirmed. Because it is effective from 1 July 2026, arrears would be paid for the delayed months once the order is issued. Treat the expected 63% as an estimate until the official order.
Does the 8th Pay Commission change DA?
Reports say the current DA revision continues under the 7th Pay Commission formula. We could not verify further details on how DA would change under the 8th Pay Commission, so check official announcements.
Where to check the official announcement
- Department of Expenditure (doe.gov.in) office memorandums
- Press Information Bureau and pmindia.gov.in for Cabinet decisions
- Department of Pension and Pensioners’ Welfare orders for DR
Simple example
Suppose a central government employee has a basic pay of Rs 40,000. At 60% DA, the allowance is Rs 24,000 per month. If DA rises to 63%, it would become Rs 25,200, a monthly increase of Rs 1,200. This is only an illustration using the estimated rate, not an official figure. For arrears, the extra amount for each month from 1 July 2026 would be added once the order is issued.
Why announcements come late
The index figures for the half-year are published first. The Department of Expenditure then prepares a proposal, the Union Cabinet approves it, and an office memorandum is issued. Dearness relief for pensioners follows through the pension department. This chain explains why the effective date and the announcement date are often months apart. Festival season often sees announcements, but there is no fixed date.
Who gets DA
Central government employees and pensioners get the central rate. State government employees get DA as decided by their own state, so their rate can be lower or higher. For example, on 23 October 2026 the Himachal Pradesh chief minister announced a 5% DA instalment for state employees, according to ANI; that does not change the central rate. Always check your own department’s order.
In short, DA stands at 60% as of October 2026 and a further rise, estimated at 3 percentage points, is awaited. Confirm only from official orders before planning your budget. State government employees follow their own state DA schedules, which can differ.
Frequently Asked Questions (FAQ)
What is the current DA rate for central government employees?
60% of basic pay as of October 2026, effective from 1 January 2026.
When is the next DA hike due?
The revision is due from 1 July 2026, but it was not officially announced as of 23 October 2026.
How much DA hike is expected?
Media estimates say about 3 percentage points, to 63%. This is not official until the order is issued.
How is DA calculated?
From the 12-month average of AICPI-IW compared with a base value under the 7th Pay Commission formula, rounded down.
Will there be arrears?
Reports say arrears from 1 July 2026 will be paid once the hike is notified.
