Dearness Allowance hike 2026: Finance Ministry issues order for 60% DA; new rates for 5th, 6th, and 7th Pay Commission

The Ministry of Finance has increased the Dearness Allowance (DA) for Central Government employees from 58% to 60% of Basic Pay, effective January 1, 2026. As per the Office Memorandum issued by the Department of Expenditure on April 22, 2026.

Official revision of Dearness Allowance (DA) rates

The Department of Expenditure, under the Ministry of Finance, has officially announced an increase in Dearness Allowance for Central Government employees across different Pay Commissions, effective from January 1, 2026.

What this means for 7th CPC employees

This update also covers civilian employees in the Defence Services. If you’re with the Railways or the Armed Forces, your specific ministries will be rolling out separate orders shortly.

Employees under the 6th Central Pay Commission

For those still drawing pay in the 6th CPC pre-revised scales, the DA rate has been enhanced from 257% to 262% of Basic Pay.

Employees under the 5th Central Pay Commission

For employees continuing under the 5th CPC pre-revised scales, the DA rate has been increased from 474% to 483% of Basic Pay.

All departments and ministries have been asked to pass this news down to any organisations under their wing that follow Central Government pay scales. For those in the Indian Audit and Accounts Department, this has already been cleared with the CAG.

With the official notification now issued, the revised rates are effective retrospectively from January 1, 2026

This will benefit about 50.46 lakh Central Government employees and 68.27 lakh pensioners.

Dearness allowance is a crucial component of the salary structure for government employees, designed to offset the impact of inflation.