What changed

The Department of Expenditure has revised Dearness Allowance for Central Government employees drawing pay under the 7th CPC from 58% to 60% of Basic Pay, with effect from 1 January 2026.

DA remains a separate element of remuneration. For this calculation, Basic Pay means the pay drawn in the applicable Pay Matrix level; it does not include special pay or other allowances.

How to calculate it

Use this simple formula:

Monthly DA = Basic Pay × 60%

For example, if Basic Pay is ₹44,900, monthly DA is ₹26,940.

The increase over the earlier 58% rate is 2% of Basic Pay. For the same ₹44,900 Basic Pay, the increase is ₹898 per month before deductions.

What to check in the salary bill

• Confirm the Basic Pay applicable for each month.
• Apply the revised rate from 1 January 2026.
• Work out the difference between DA already drawn and DA now admissible.
• Check whether the change also affects deductions or allowances linked to Basic Pay plus DA.

You can use the Salary Calculator to prepare a monthly estimate. Keep the DA field editable because future Government orders may revise the rate again.

Official source

Read the Department of Expenditure order before processing an official claim.

This guide is a practical explanation. The Government order and departmental instructions prevail in every case.