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DA Rate From January 2026 & DA Hike History Table

Dearness allowance for central government employees, revised every January and July: the full recent rate history, what the January 2026 order is expected to bring, and a quick arrears calculator.

DA rate table — 7th CPC era

Effective fromDA rateNote
January 2022 34%
July 2022 38%
January 2023 42%
July 2023 46%
January 2024 50% DA crossed 50% — HRA slabs revised to 30/20/10
July 2024 53%
January 2025 55%
July 2025 58% Current rate (latest DoE order)
January 2026 ~61% (expected) ≈ +3 points on the AICPIN trend — not official, verify the DoE order

As of the Jul-2025 DoE order (58%). The Jan-2026 revision is an expectation based on the AICPIN trend — always verify against the official Department of Expenditure order. DA began at 0% on 1 January 2016 under the 7th CPC and was frozen during Jan 2020 – Jun 2021 (Covid freeze) before resuming.

DA arrears mini-calculator

Pensioners: enter basic pension for DR arrears
~61% expected from Jan 2026 — not official
Months between the effective date and the order
Total DA arrears
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Monthly DA difference—
DA at old rate—
DA at new rate—

How AICPIN drives the DA rate

Dearness allowance is not a discretionary bonus — it is an index-linked formula. The Labour Bureau publishes the All-India Consumer Price Index for Industrial Workers (AICPIN-IW) every month, and the DA rate is computed from its 12-month average:

DA% = ((12-month average of AICPIN − 261.42) / 261.42) × 100

261.42 is the index base fixed when the 7th CPC matrix took effect. Because the formula uses a rolling 12-month average, the next revision is largely predictable a couple of months in advance — by the time the last index print arrives, analysts can usually call the rounded percentage. That is why the January 2026 expectation of about +3 points (to ~61%) circulates before any order exists. It remains unofficial until the Department of Expenditure issues the order.

The twice-yearly DA cycle

Revisions are effective 1 January and 1 July each year. The Union Cabinet typically approves the January revision around March and the July revision around October. The intervening months are paid as arrears — automatically, with the first salary after the order. A serving employee on a basic pay of ₹35,400 would, for a +3 point revision, see a monthly difference of ₹1,062; if the order lands 3 months after the effective date, that is ₹3,186 of arrears in one credit. Pensioners get the matching dearness-relief (DR) arrears on basic pension.

DA from January 2026: what to expect (as of June 2026)

The AICPIN trend through late 2025 points to an increase of around 3 percentage points, taking DA from 58% to roughly 61%. Treat this strictly as a trend-based expectation: the official DoE order is the only number that matters for pay fixation, and the final rounding can differ. This page is updated against DoE orders — the table above marks what is order-backed and what is expectation.

DA and the 8th Pay Commission

Every pay-commission revision resets DA to zero: the accumulated allowance is absorbed into the new basic pay through the fitment factor, and the index base is reset so DA starts climbing again under the new matrix. That is why "58% DA" and "8th CPC hike" are two sides of one calculation — to see them combined on your own pay, use the 8th Pay Commission salary calculator, or the pension calculator if you are a pensioner.

Frequently Asked Questions

What is the expected DA hike from January 2026?
Based on the AICPIN trend through the second half of 2025, the January 2026 revision is expected at around +3 percentage points — taking DA from 58% to roughly 61%. This is an expectation, not an order: the cabinet usually approves the January revision around March, and only the official DoE order settles the rate. Verify before acting.
How is DA calculated?
DA for central government employees is linked to the All-India Consumer Price Index for Industrial Workers (AICPIN-IW), published monthly by the Labour Bureau. The rate is set from the 12-month average of the index using the 7th CPC formula — DA% = ((12-month average of AICPIN − 261.42) / 261.42) × 100 — and the result is rounded to the nearest whole percentage point at each half-yearly revision.
What is the difference between DA and DR?
Dearness Allowance (DA) is paid to serving employees on basic pay; Dearness Relief (DR) is the identical compensation paid to pensioners on basic pension. The rate and the January/July cycle are the same for both — when DA moves to a new rate, a matching DR order follows for pensioners.
What happens to DA after the 8th Pay Commission?
DA resets to zero on revision. The DA you draw today gets absorbed into the new basic pay through the fitment factor, and the index base is rebased so DA starts accumulating again from 0% under the new matrix. The same happened on 1 January 2016 when the 7th CPC took effect.
When is the DA hike announced, and do employees get arrears?
Revisions take effect from 1 January and 1 July each year, but the cabinet typically approves them around March and October. The gap months are always paid as arrears with the salary following the approval — for example, a January revision approved in March is paid with roughly three months of arrears. Use the calculator above to estimate yours.
Is DA taxable?
Yes — DA is fully taxable as salary income for serving employees, and DR is taxable for pensioners. DA also counts inside "basic + DA" for retirement math: EPF contributions and gratuity are computed on basic plus DA.

Estimates are for information and education only — not financial, tax or investment advice. Verify current rates and rules with official sources.

Related Calculators

8th CPC Salary CalculatorFitment scenarios on your basicFitment Factor ExplainedWhy DA resets to zero8th CPC Pension CalculatorRevised pension + DR notesIn-Hand Salary CalculatorCTC to monthly take-home