How to use the DA arrears calculator
- Choose employee or pensioner.
- Pick your pay level or type your basic pay or basic pension.
- Check the old and new rates (60% and 63% by default).
- Choose the month the new rate is first paid; earlier months are arrears.
- Read your monthly increase and total arrears.
DA hike expected: 60% to 63%
Dearness allowance is 60% of basic pay today. The next revision, from Jul 2026, has not been announced yet; an increase of about 3 percentage points to 63% is widely expected. This page updates when the government announces it.
Arrears = basic pay × DA increase × months paid at the old rate
The hike applies from Jul 2026, but salaries keep being paid at the old rate until the order is issued. The difference for those months is paid later as one amount: the arrears.
How DA is calculated
Dearness allowance follows prices. The Labour Bureau publishes the All-India Consumer Price Index for Industrial Workers (AICPI-IW) every month, and DA is revised twice a year from the average of the last 12 readings:
- January revision: the average of January to December of the previous year.
- July revision: the average of July of the previous year to June of the current year.
DA % = (12-month average AICPI-IW × 2.88 − 261.42) ÷ 261.42 × 100
The index moved to a 2016 base, so its readings are multiplied by 2.88 to put them on the older scale the formula uses; 261.42 is the index level fixed when the 7th Pay Commission pay started in 2016. The result is rounded down to a whole percentage. Because prices usually rise a few percent a year, each revision tends to add about 2 to 4 percentage points.
DA hike and arrears by pay level
Starting basic pay of each level, the monthly increase at 63% and four months of arrears (first paid with the November salary). Pay above the first cell of a level scales the same way.
| Level | Basic pay | More a month | Arrears (4 months) |
|---|---|---|---|
| Level 1 | ₹18,000 | ₹540 | ₹2,160 |
| Level 2 | ₹19,900 | ₹597 | ₹2,388 |
| Level 3 | ₹21,700 | ₹651 | ₹2,604 |
| Level 4 | ₹25,500 | ₹765 | ₹3,060 |
| Level 5 | ₹29,200 | ₹876 | ₹3,504 |
| Level 6 | ₹35,400 | ₹1,062 | ₹4,248 |
| Level 7 | ₹44,900 | ₹1,347 | ₹5,388 |
| Level 8 | ₹47,600 | ₹1,428 | ₹5,712 |
| Level 9 | ₹53,100 | ₹1,593 | ₹6,372 |
| Level 10 | ₹56,100 | ₹1,683 | ₹6,732 |
| Level 11 | ₹67,700 | ₹2,031 | ₹8,124 |
| Level 12 | ₹78,800 | ₹2,364 | ₹9,456 |
| Level 13 | ₹1,23,100 | ₹3,693 | ₹14,772 |
| Level 13A | ₹1,31,100 | ₹3,933 | ₹15,732 |
| Level 14 | ₹1,44,200 | ₹4,326 | ₹17,304 |
| Level 15 | ₹1,82,200 | ₹5,466 | ₹21,864 |
| Level 16 | ₹2,05,400 | ₹6,162 | ₹24,648 |
| Level 17 | ₹2,25,000 | ₹6,750 | ₹27,000 |
| Level 18 | ₹2,50,000 | ₹7,500 | ₹30,000 |
Beyond this hike
The 63% rate is also what the 8th Pay Commission will fold into the new basic pay. See how that affects the real rise at each fitment factor on the 8th Pay Commission calculator.
Frequently asked questions
When will the DA hike from Jul 2026 be announced?
It has not been announced yet. A hike of about 3 percentage points, to 63%, is expected. July hikes are usually approved by the Cabinet in September or October and apply from 1 July, with arrears.
How is DA calculated?
DA follows the All-India Consumer Price Index for Industrial Workers (AICPI-IW), published monthly by the Labour Bureau. Twice a year, the average index for the last 12 months is compared with the base level fixed when the 7th Pay Commission began; the percentage rise, rounded down to a whole number, is the new DA.
How are DA arrears calculated?
Arrears = basic pay × the DA increase × the number of months already paid at the old rate. For a Level 6 employee on ₹35,400 basic, a 3% rise is ₹1,062 a month, so four months of arrears come to ₹4,248.
Do pensioners get the same increase?
Yes. Pensioners get dearness relief (DR) at the same rate as DA, on their basic pension, with arrears from the same date. Choose Pensioner in the calculator and enter your basic pension.
When are DA arrears paid?
Usually with the first salary or pension paid at the new rate, as one lump sum, once the Department of Expenditure issues the order after Cabinet approval.
Is DA arrears taxable?
Yes. DA and its arrears are taxed as salary in the year you receive them. If arrears relate to an earlier financial year and push you into a higher slab, you can claim relief by spreading them back over the years they belong to.
Does the DA hike change HRA?
Not at this level. Under the 7th Pay Commission, HRA rates step up only when DA crosses 25% and 50%; both thresholds are already behind us. Transport allowance carries DA on it, so it rises a little too.