DA rises to 63% from 1 July 2026: what changes in your pay
If you work for the Central Government, or draw a central pension, your Dearness Allowance has just gone up. This guide explains what the official orders say, how to work out the change in your own pay, and what to check on your next salary slip. We checked both documents on 7 November 2026.
What the government has announced
On 28 October 2026 the Union Cabinet approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners with effect from 1 July 2026. According to the Press Information Bureau release, this is an increase of 3% over the existing rate of 60% of basic pay or pension. The combined cost to the exchequer is Rs 10,016.10 crore a year, and the release says about 48.54 lakh employees and 68.71 lakh pensioners will benefit. It adds that the increase follows the accepted formula based on the recommendations of the 7th Central Pay Commission.
The Department of Expenditure then issued Office Memorandum No. 1/2(i)/2026-E.II(B) dated 29 October 2026. It says DA is enhanced from 60% to 63% of basic pay with effect from 1 July 2026. It also repeats the usual rounding rule: any DA amount with a fraction of 50 paise or more is rounded up to the next rupee, and a fraction below 50 paise is ignored.
A worked example for an employee
Take an example basic pay of Rs 50,000 a month. These are round numbers for illustration, not a real pay slip.
At the old 60% rate, DA is Rs 30,000. At the new 63% rate, DA is Rs 31,500. The difference is Rs 1,500 a month, or Rs 18,000 over twelve months. We checked this with a calculation.
The change applies from 1 July, but the higher DA usually appears in the salary only when the office processes it. If the new rate is first paid with the November salary, the months of July, August, September and October are paid as arrears. That would be 4 months at Rs 1,500, which is Rs 6,000. Your office may pay it in a different month, so the number of months can change. The Gunaka DA arrears calculator lets you enter your own basic pay and the number of months.
A worked example for a pensioner
For a basic pension of Rs 30,000, Dearness Relief at 60% is Rs 18,000 and at 63% is Rs 18,900. The monthly rise is Rs 900. The same arrears logic applies from 1 July 2026.
What to check on your slip
First, confirm that the DA line shows 63% of your basic pay. Second, look for a separate arrears entry and check that it covers the correct months. Third, remember that deductions that depend on basic pay plus DA, such as a pension contribution, may also change, so compare the whole slip and not only the DA line. This order is for Central Government employees. State governments announce their own DA, so a state employee should wait for the state order.
Next step
Open the Gunaka Central Government salary calculator or the DA arrears calculator, put in your basic pay, and compare the result with your slip. If something does not match, ask your accounts office to show the working. Gunaka gives estimates, not financial advice.
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- Pensioners: Digital Life Certificate campaign runs until 30 November 2026
- How your yearly increment works in the pay matrix, with 63% DA