Dearness allowance: No DA hike announcement yet; how arrears would be calculated if approved

The July revision is generally effective from July 1, but the government has yet to announce the new rate. Central government employees currently receive DA at 60% of basic pay, following the previous revision announced in April 2026.

Based on inflation data used to calculate DA, a hike of three percentage points is being anticipated. If approved, the rate would rise from 60% to 63%. However, the increase has not been confirmed, and employees will have to wait for the government's official announcement.

DA hike 2026: How will arrears be calculated?

If the government approves the hike with effect from July 1, eligible employees could receive arrears for the months covered by the official order.

Arrears would be calculated as the difference between the old and revised DA amounts for each eligible month. For example, if DA rises from 60% to 63%, employees would receive an additional amount equal to 3% of their basic pay every month.

Here's how much employees could receive if the increase is approved and arrears are paid for four months, from July to October 2026.

These figures are examples based on starting basic pay at the respective levels of the 7th Central Pay Commission (CPC) pay matrix. They assume a three-percentage-point hike and four months of arrears. Neither the proposed increase nor the payment period has been officially confirmed.

The actual amount will depend on the rate approved by the government, the effective date and the period for which arrears are payable.

How much could your monthly salary increase?

Take an employee whose basic pay is ₹44,900 a month. At the current DA rate of 60%, the monthly DA works out to ₹26,940.

If DA rises to 63%, the amount would increase to ₹28,287. That means an additional ₹1,347 a month, before any applicable deductions or other payroll adjustments.

Employees can work out their estimated monthly increase by multiplying their basic pay by 3%. To calculate potential arrears, they can multiply that amount by the number of eligible months.

The final amount, however, will depend on the government's decision and the terms of the official order.

When will the Centre announce the DA hike?

There is still no confirmed date for the July 2026 DA and DR revision. The October 14 Cabinet meeting ended without an announcement, and no meeting was held on October 21, according to media reports.

For now, employees and pensioners will have to wait for an official announcement. Until then, the expected hike and any arrears should be treated as unconfirmed.