DA hiked to 63% for central government employees: Check monthly salary increase across 7th Pay Commission levels

The Union Cabinet approved a 3-percentage-point increase in Dearness Allowance (DA) for Central Government employees, raising the rate from 60% to 63% of basic pay on Wednesday. The revised rate will apply from 1 July 2026, providing additional inflation-linked relief to employees.

According to the Ministry of Finance release dated 28 October, the revision follows the accepted formula based on the recommendations of the 7th Central Pay Commission (CPC). Here's how much salaries could increase across different pay levels under the 7th CPC.

DA is calculated as a percentage of basic pay. With the rate increasing from 60% to 63%, employees will receive an additional amount equivalent to 3% of their basic pay each month.

The formula for calculating DA is:

DA amount = Basic pay × DA rate ÷ 100

*Based on the Ministry of Finance resolution dated 16 May 2017 on the pay matrix for civilian employees, Actual figures can vary based on your basic pay

For example, an employee with a basic pay of ₹18,000 in Pay Level 1 currently receives ₹10,800 as DA at 60%. At the revised rate of 63%, the DA amount will increase to ₹11,340. This translates into an additional ₹540 per month.

Since the revised rate is effective from 1 July 2026, the additional DA for six months, from July to December 2026, would amount to ₹3,240

Similarly, for a central government employee in Pay Level 5, with a basic pay of ₹29,200, the DA amount will increase from ₹17,520 at the existing rate of 60% to ₹18,396 at the revised rate of 63%. For six months, the additional DA would total ₹5,256.

The increase is calculated on basic pay, not on the entire salary package. Components such as house rent allowance (HRA) and transport allowance are not included in the DA calculation itself.

Employees should also distinguish between the revised monthly DA entitlement and the amount credited to their bank accounts. Since the revised rate is effective from 1 July 2026, the applicable arrears will depend on the payroll processing.

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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HomeMoneyPersonal FinanceDA hiked to 63% for central government employees: Check monthly salary increase across 7th Pay Commission levels

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