SRINAGAR: The Government of India has increased the Dearness Allowance (DA) for Central Government employees from 58 percent to 60 percent of basic pay, effective January 1, 2026, according to an Office Memorandum issued by the Ministry of Finance’s Department of Expenditure.
The memorandum states that “Basic Pay” refers strictly to the pay drawn in the prescribed level of the Pay Matrix under the 7th Central Pay Commission and excludes any additional components such as special pay.
It further clarifies that DA will continue to be treated as a separate element of salary and will not be counted as pay under existing financial rules.
As per the guidelines, DA amounts involving fractions of 50 paise or more will be rounded up to the next rupee, while amounts below 50 paise will be disregarded.
The revised DA structure will also apply to civilian employees paid from Defence Services Estimates, while separate orders will be issued for Armed Forces personnel and Railway employees.
In the case of employees of the Indian Audit and Accounts Department, the decision has been taken in consultation with the Comptroller and Auditor General of India in accordance with Article 148(5) of the Constitution.
Dearness Allowance (DA) is a crucial component of the salary structure for government employees, public sector undertakings (PSU) employees, and pensioners in India, specifically designed as a cost-of-living adjustment to mitigate the impact of inflation. It is calculated as a fixed percentage of an employee’s basic salary and is updated periodically—usually twice a year in January and July—based on the All India Consumer Price Index (AICPI).
