DA hike for employees under 5th, 6th Pay Commissions: Key details from Finance Ministry orders on Dearness Allowance
The government has increased the Dearness Allowance (DA) for Central Government employees from 60% to 63% of basic pay, effective 1 July 2026. However, the revised DA rate applies only to employees covered under the 7th Pay Commission.
Employees who continue to draw their salaries under the previous pay commissions, including the 6th and 5th Central Pay Commissions (CPC), have received separate DA revisions.
Here's what the latest Office Memorandums issued by the Ministry of Finance's Department of Expenditure on 29 October reveal and what employees need to know.
According to the order released on Thursday, “The rate of Dearness Allowance (DA) in respect of employees who are continuing to draw their pay in the pre-revised pay scale/Grade Pay as per 6th Central Pay Commission, shall be enhanced from the existing rates of 262% to 269% of Basic Pay w.e.f. 01st July, 2026.”
This means employees under the 6th CPC will receive DA at the revised rate of 269% from July 2026, an increase of 7 percentage points.
The order also states that the provisions in paragraphs 3, 4 and 5 of the Ministry's Office Memorandum dated 29 August 2008 will continue to apply.
The 2008 Office Memorandum clarifies that basic pay for DA calculation includes the pay drawn in the prescribed pay band plus the applicable grade pay. However, other payments, such as special pay, are excluded. For government employees in the HAG+, Apex Scale and Cabinet Secretary's pay scales, basic pay means the pay drawn in the prescribed scale.
It also states that Non-Practising Allowance (NPA), wherever applicable, will be included while calculating DA.
Suppose an employee's basic pay, including grade pay, is ₹20,000. At the earlier DA rate of 262%, the DA would be ₹52,400. At the revised rate of 269%, it would increase to ₹53,800, an additional ₹1,400 per month.
In a separate release dated 29 October, the Finance Ministry (Department of Expenditure) announced that the DA for employees continuing to draw salaries under the pre-revised pay scales of the 5th CPC will increase from 483% to 497% of Basic Pay, effective 1 July 2026, representing a 14 percentage-point increase.
The order states that the provisions of paragraphs 3, 4 and 5 of the Ministry's Office Memorandum dated 3 October 1997 will continue to apply.
The 1997 Office Memorandum clarifies that Pay for DA calculation includes the salary drawn in the prescribed pay scale, along with any stagnation increments and Non-Practising Allowance (NPA), wherever applicable. However, other payments, such as special pay and personal pay, are excluded.
Suppose an employee's eligible Basic Pay under the 5th CPC is ₹10,000. At 483%, the DA would be ₹48,300. At the revised rate of 497%, it would rise to ₹49,700, resulting in an additional ₹1,400 per month.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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