DA Hiked to 60% from Jan 2026 — Order Issued, 3-Month Arrears in April Salary
Ministry of Finance has issued the Office Memorandum raising Dearness Allowance for central government employees from 58% to 60% of Basic Pay, effective 1 January 2026. Three months of arrears (Jan–Mar 2026) credited with April salary. Salary impact, new rate table and pensioner DR details.
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DA Hiked to 60% from Jan 2026 — Order Issued, 3-Month Arrears in April Salary
News flash. The Department of Expenditure, Ministry of Finance has issued the Office Memorandum dated 22 April 2026, raising Dearness Allowance (DA) for central government employees from 58% to 60% of Basic Pay, effective 1 January 2026. A matching Dearness Relief (DR) hike applies to pensioners. Three months of arrears (January, February, March 2026) were paid along with the April 2026 salary and pension. About 50.46 lakh employees and 68.27 lakh pensioners benefit.
In a long-pending decision, the Ministry of Finance has formally notified the January 2026 DA hike. The 2-percentage-point increase aligns with the All India Consumer Price Index for Industrial Workers (AICPI-IW) trajectory of the second half of 2025 and continues the routine half-yearly revision under the 7th Central Pay Commission formula.
The Cabinet had approved the hike earlier in March 2026, but the formal Office Memorandum — required before pay-bill units across ministries and PSUs can effect the change — was issued on 22 April 2026 by the Department of Expenditure. Arrears for January, February and March 2026 were calculated at the new 60% rate and disbursed alongside the April 2026 salary cycle.
Key highlights
- DA rate: 58% → 60% of Basic Pay (Level 1 – 18 of the 7th CPC pay matrix)
- Effective from: 1 January 2026
- OM issued on: 22 April 2026 (Department of Expenditure)
- Arrears period: January, February, March 2026 (paid with April salary)
- Beneficiaries: ~50.46 lakh central government employees + ~68.27 lakh pensioners
- Pensioners’ relief (DR): Raised to 60% in step
How much extra will you take home?
DA is calculated as a percentage of Basic Pay (the level-pay drawn under the 7th CPC pay matrix). A 2-percentage-point rise translates as follows:
| Basic Pay (₹) | DA @ 58% (previous) | DA @ 60% (revised) | Monthly increase |
|---|---|---|---|
| 18,000 (entry, Level 1) | 10,440 | 10,800 | +360 |
| 25,500 (Level 4) | 14,790 | 15,300 | +510 |
| 35,400 (Level 6) | 20,532 | 21,240 | +708 |
| 56,100 (Level 10) | 32,538 | 33,660 | +1,122 |
| 78,800 (Level 12) | 45,704 | 47,280 | +1,576 |
| 1,18,500 (Level 14) | 68,730 | 71,100 | +2,370 |
Plus arrears. For January-March 2026, the 2-percentage-point gap translates into roughly 6% of one month’s basic pay as a one-time arrears credit in the April 2026 paycheck.
Why this update matters
DA is the inflation-protection component of central government salaries. It is revised twice a year — January and July — based on the 12-month average of the AICPI-IW. Any delay in notification means employees and pensioners run a temporary cash-flow gap, which is then paid out as arrears. The April 2026 OM closes the January 2026 cycle. The next revision (effective 1 July 2026) is expected to be announced in September-October 2026, based on AICPI-IW data through June 2026.
Action required. Nothing for individuals to do. Your DDO / pay-bill unit applies the revision automatically. Verify the April 2026 payslip shows DA at 60% of Basic Pay and that the 3-month arrears component appears as a separate line. If not, raise a ticket via your office’s e-HRMS / Bhavishya portal.
What about older Pay Commission scales?
Employees still on 5th CPC and 6th CPC scales (rare — mostly in autonomous bodies and select PSUs that haven’t migrated) get their own DA tables, also revised in step:
| Pay Commission | DA from Jan 2026 |
|---|---|
| 5th CPC | 455% (illustrative — check OM table for exact rate) |
| 6th CPC | 252% (illustrative — check OM table for exact rate) |
| 7th CPC | 60% (the headline rate referenced in this article) |
Refer to the Office Memorandum on doe.gov.in for the exact revised rates under each Pay Commission scale.
Timeline of events
Important Dates
- March 2026 — Union Cabinet approves the 2% DA hike.
- 22 April 2026 — Department of Expenditure issues the Office Memorandum.
- April 2026 salary cycle — Revised DA paid + 3-month arrears credited.
- September-October 2026 (expected) — Next DA revision (effective 1 July 2026) notified.
Impact on 8th CPC fitment
The current 60% DA also matters for the 8th Pay Commission computation. Under the standard formula, the new basic pay under a successor pay commission is (existing basic pay + DA on the cut-off date) × fitment factor. With DA at 60% on the 8th CPC’s effective date of 1 January 2026, the absorbed DA component becomes part of the new basic pay once the 8th CPC report is implemented (expected late 2027 / early 2028).
Frequently asked questions
1. What is the new DA rate for central government employees from January 2026?
2. When were the DA arrears paid?
3. Who benefits from the January 2026 DA hike?
4. When will the next DA hike be announced?
5. Does the DA hike apply to state government employees?
6. How does this affect the 8th Pay Commission calculation?
Official references
Disclaimer. SarkariBaba is an independent information publisher and is not affiliated with any government department. The article reflects publicly available information as of the published date. Always verify the actual rate applicable to your pay commission scale against the official OM on doe.gov.in before disputing any salary figure.
