FinanceWednesday, October 28, 20263 min read

DA hiked by 3% to 63%: Know impact on salaries

By Economic Times · Published by Everything Blog

In short

The revised Dearness Allowance and Dearness Relief rates apply to the July–December 2026 window following calculations from the All India Consumer Price Index. Eligible staff will receive arrears covering July through October alongside their regular November salaries due to mid-cycle payroll processing timelines. For Level 1 staff on an Rs 18,000 base pay, monthly payments will lift by Rs 540, while senior positions like Level 10 will see a monthly surge of Rs 1,683.

Key points

Arrears covering the prior four months are expected to be disbursed alongside regular sal…: Arrears covering the prior four months are expected to be disbursed alongside regular salaries at the end of November.
Higher pay bands will see larger absolute increases, such as Level 10 employees receiving…: Higher pay bands will see larger absolute increases, such as Level 10 employees receiving an additional Rs 1,683 each month.
Standard payroll calculation windows running from the 15th to the 15th dictate the schedu…: Standard payroll calculation windows running from the 15th to the 15th dictate the schedule for releasing the updated allowances.

Sources checked by our analysis pipeline: 1

Central government employees will get 63% dearness allowance (DA) applicable for the July-December 2026 period. The Centre today (Wednesday, October 28, 2026) announced that DA for employees and dearness relief (DR) for pensioners will rise by 3% each from its current rate of 60%.

A 3% DA hike also means that a Level 1 employee who was getting approximately Rs 11,340 as DA at 60% will now get Rs 11,340, a hike of Rs 540.

Government employees will also get arrears for the delay in the announcement of the DA.

DA is based on the average 12-month retail inflation measured through the All India Consumer Price Index (AICPI-IW) for the July 2025-June 2026 period.

63% DA rate applicability

The DA rate of 63% will be applicable for the July-December 2026 period. Employees are likely to get DA arrears for the July-October period along with their salary at the end of November. This is because pay is calculated from the 15th of one month to the 15th of the next month.

A 3% DA hike also means that a Level 1 employee who was getting approximately Rs 11,340 as DA at 60% will now get Rs 11,340, a hike of Rs 540.

Government employees will also get arrears for the delay in the announcement of the DA.

Dearness Allowance Hike: AICPI index from July 2025 to June 2026

Month | Index Value |

Jul-25 | 146.5 |

Aug-25 | 147.1 |

Sep-25 | 147.3 |

Oct-25 | 147.7 |

Nov-25 | 148.2 |

Dec-25 | 148.2 |

Jan-26 | 148.6 |

Feb-26 | 148.5 |

Mar-26 | 149.1 |

Apr-26 | 149.9 |

May-26 | 150.8 |

Jun-26 | 151.9 |

Average | 148.65 |

DA | 63.76%= 63% |

63% DA rate applicability

DA hike: Impact on Level 1-10 employees' salaries as Dearness Allowance reaches 63%

Level 1 | ₹ 18,000 | ₹ 10,800 | ₹ 11,340 | ₹ 540 |

Level 2 | ₹ 19,900 | ₹ 11,940 | ₹ 12,537 | ₹ 597 |

Level 3 | ₹ 21,700 | ₹ 13,020 | ₹ 13,671 | ₹ 651 |

Level 4 | ₹ 25,500 | ₹ 15,300 | ₹ 16,065 | ₹ 765 |

Level 5 | ₹ 29,200 | ₹ 17,520 | ₹ 18,396 | ₹ 876 |

Level 6 | ₹ 35,400 | ₹ 21,240 | ₹ 22,302 | ₹ 1,062 |

Level 7 | ₹ 44,900 | ₹ 26,940 | ₹ 28,287 | ₹ 1,347 |

Level 8 | ₹ 47,600 | ₹ 28,560 | ₹ 29,988 | ₹ 1,428 |

Level 9 | ₹ 53,100 | ₹ 31,860 | ₹ 33,453 | ₹ 1,593 |

Level 10 | ₹ 56,100 | ₹ 33,660 | ₹ 35,343 | ₹ 1,683 |

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Original source: economictimes.indiatimes.com

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