60% is the revised Dearness Allowance (DA) and Dearness Relief (DR) rate for Central Government employees and pensioners for the period beginning January 2026. On April 18, 2026, the Cabinet Committee formally approved the 2% enhancement over the existing 58% rate to compensate for price rises.
Cabinet Approval Confirmed — Effective 01.01.2026
The Union Cabinet has authorized the release of the additional 2% instalment. The Ministry of Finance will shortly issue the formal Office Memorandum directing PAOs to process the arrears for January, February, and March 2026.
- Revised DA Rate: 60% (Increase of 2%).
- Effective Date: 01.01.2026.
- Beneficiaries: 50.46 lakh employees and 68.27 lakh pensioners.
- Exchequer Impact: Rs. 6791.24 crore per annum.
Calculation Methodology and Official DA Formula
The 2% jump directly aligns with the 7th CPC recommendations. The Labour Bureau tracks inflation via the CPI-IW (Consumer Price Index for Industrial Workers), anchored to Base Year 2016. By calculating the 12-month average of this AICPIN data, the Pay Commission Secretariat formulates the exact percentage increase required to neutralize inflation.
DA Calculation Formula (7th CPC):
Revised DA Amount = Basic Pay × 60 ÷ 100
DDOs projecting bulk arrears can validate payroll outputs using a simple Google Sheets formula. By applying =ROUND(A2*0.60, 0) (where A2 contains the Basic Pay), the exact revised DA per employee can be instantly calculated for the entire department roster.
| Pay Level | Basic Pay (Rs) | DA Before (58%) | DA After (60%) | Monthly Gain | Annual Gain |
|---|---|---|---|---|---|
| Level 1 (MTS) | 18,000 | 10,440 | 10,800 | +360 | +4,320 |
| Level 6 (SO/JE) | 35,400 | 20,532 | 21,240 | +708 | +8,496 |
| Level 11 (Dy Secy) | 67,700 | 39,266 | 40,620 | +1,354 | +16,248 |
| Level 13 (Jt Secy) | 1,23,100 | 71,398 | 73,860 | +2,462 | +29,544 |
DA Arrears for Jan–Mar 2026: Level-Wise Projection
Since the Cabinet clearance arrived in mid-April, the salary cycles for January, February, and March were processed at the older 58% rate. The differential 2% amount will be paid as a lump sum arrear.
| Pay Level | Monthly Arrear (2%) | Arrear Months | Total Arrear Payout |
|---|---|---|---|
| Level 1 | 360 | 3 (Jan–Mar 2026) | 1,080 |
| Level 6 | 708 | 3 | 2,124 |
| Level 11 | 1,354 | 3 | 4,062 |
| Level 13 | 2,462 | 3 | 7,386 |
Eligibility and Exceptions
DDOs routinely observe claims from non-regular staff immediately following Cabinet DA announcements. However, the exact mapping of this 2% hike is restricted to specific categories drawing pay from the Consolidated Fund of India.
Who Is Covered
All regular 7th CPC Central Government employees.
Civilian defence personnel paid from defence estimates.
Central government pensioners and family pensioners.
All India Services (IAS, IPS, IFoS) officers.
Who Is NOT Covered
Contractual and outsourced staff on fixed consolidated pay.
Employees of Central Public Sector Enterprises (governed by IDA).
State government employees (until their respective states adopt the hike).
Staff on Extraordinary Leave (EOL) without pay during the period.
Mandatory Action Checklist for Drawing & Disbursing Officers
To ensure timely disbursement of the revised salary and the accumulated 3-month arrears, accounts offices must initiate the following steps immediately upon the publication of the Ministry of Finance OM.
- Step 1: Download the official Ministry of Finance (Department of Expenditure) OM once uploaded on finmin.nic.in.
- Step 2: Update the DA parameter in the PFMS / payroll software from 58% to 60%.
- Step 3: Generate the supplementary arrear bill for January, February, and March 2026.
- Step 4: Verify the arrear calculations against the Basic Pay drawn during those specific months (accounting for any mid-period increments).
- Step 5: Ensure standard statutory deductions (like NPS/GPF contributions) are appropriately applied to the arrear component before final disbursement.
Frequently Asked Questions (FAQ)
What is the new DA rate from January 2026?
The Dearness Allowance (DA) rate has been increased by 2%, bringing the revised rate to 60% of basic pay, effective from 01.01.2026.
How many months of DA arrears will be paid?
Employees and pensioners will receive 3 months of DA arrears (January, February, and March 2026), which will be disbursed along with the April 2026 salary and pension.
Who is eligible for the 60% DA hike?
All regular 7th CPC Central Government employees and pensioners drawing their pension from the Consolidated Fund of India are eligible for this 2% DA and DR hike.
What is the formula to calculate the new DA amount?
The new DA amount is calculated as 60% of your Basic Pay. For example, if your Basic Pay is Rs. 35,400, your revised DA will be Rs. 21,240.
Will this DA hike apply to PSU and contractual employees?
No. The Cabinet approval strictly covers Central Government employees and pensioners. CPSE and contractual employees are governed by separate wage agreements and IDA patterns.
How does the Labour Bureau determine the DA hike?
The 2% increase is strictly in accordance with the accepted 7th CPC formula, which relies on the 12-month average of the CPI-IW data compiled by the Labour Bureau.
हिंदी सारांश
केंद्रीय मंत्रिमंडल ने 18 अप्रैल 2026 को केंद्र सरकार के कर्मचारियों और पेंशनभोगियों के लिए महंगाई भत्ते (DA) और महंगाई राहत (DR) में 2 प्रतिशत की वृद्धि को मंजूरी दे दी है। इसके साथ ही 1 जनवरी 2026 से नया डीए 60 प्रतिशत हो गया है। इस फैसले से लगभग 50.46 लाख कर्मचारियों और 68.27 लाख पेंशनभोगियों को लाभ मिलेगा। जनवरी, फरवरी और मार्च 2026 के 3 महीने का एरियर अप्रैल के वेतन के साथ दिया जाएगा।
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