Centre Hikes Dearness Allowance to 63% for Central Govt Employees; 3% Increase Effective July 1
Payment of DA arrears cannot be made before the disbursement of salary for October, 2026 and the order does not specify an exact date for the release of the arrears
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The Government of India has increased Dearness Allowance (DA) for Central Government employees from 60% to 63% of Basic Pay, effective July 1, 2026.
The Ministry of Finance, Department of Expenditure, announced the revision through an Office Memorandum dated October 28, 2026. The decision is expected to provide financial relief to Central Government employees, with arrears payable from July 2026.
DA Arrears to Be Paid Along with October Salary or Later
According to the memorandum, payment of DA arrears cannot be made before the disbursement of salary for October 2026. The order does not specify an exact date for the release of the arrears.
The revised DA will be calculated on Basic Pay under the pay structure based on the recommendations of the Seventh Central Pay Commission (7th CPC), as accepted by the government. Special pay and other similar payments will not be included in Basic Pay for this calculation.
The memorandum also clarifies that DA will continue to remain a distinct component of remuneration and will not be treated as pay under Fundamental Rule 9(21).
Defence Civilian Employees Also Covered
The revised DA orders will also apply to civilian employees paid from the Defence Services Estimates. However, separate orders will be issued by the Ministry of Defence for Armed Forces personnel and by the Ministry of Railways for railway employees.
The memorandum has been issued by the Department of Expenditure, Ministry of Finance, and circulated to all ministries and departments of the Government of India.
