DA Calculation Formula
DA = Basic Pay × (DA% / 100)
For example, if your basic pay is ₹56,100 and the current DA rate is 60%, then your DA = ₹56,100 × 0.60 = ₹33,660 per month.
Calculate your DA instantly based on the latest rates for Central Government employees & pensioners under the 7th Pay Commission.
Enter your basic pay to calculate your Dearness Allowance and total salary.
Complete history of Dearness Allowance rates from January 2016 to January 2026 for Central Government employees.
| Effective Date | DA Rate | Hike | Status |
|---|---|---|---|
| January 1, 2026 | 60% | +2% | Latest |
| July 1, 2025 | 58% | +3% | Active |
| January 1, 2025 | 55% | +2% | Past |
| July 1, 2024 | 53% | +3% | Past |
| January 1, 2024 | 50% | +4% | Past |
| July 1, 2023 | 46% | +4% | Past |
| January 1, 2023 | 42% | +4% | Past |
| July 1, 2022 | 38% | +4% | Past |
| January 1, 2022 | 34% | +6% | Past |
| July 1, 2021 | 28% | Restored | Restored |
| Jan 2020 – Jun 2021 | DA Frozen (COVID-19) | Frozen | |
| July 1, 2019 | 17% | +5% | Past |
| January 1, 2019 | 12% | +3% | Past |
| July 1, 2018 | 9% | +2% | Past |
| January 1, 2018 | 7% | +2% | Past |
| July 1, 2017 | 5% | +1% | Past |
| January 1, 2017 | 4% | +2% | Past |
| July 1, 2016 | 2% | +2% | Past |
| January 1, 2016 | 0% | Base | 7th CPC Start |
Understanding the DA calculation formula used by the Government of India under the 7th Central Pay Commission.
DA = Basic Pay × (DA% / 100)
For example, if your basic pay is ₹56,100 and the current DA rate is 60%, then your DA = ₹56,100 × 0.60 = ₹33,660 per month.
DA% = [(Avg AICPI-IW – 115.76) / 115.76] × 100
The DA percentage is calculated using the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW) with base year 2016=100.
DA is revised twice a year by the Government of India:
When DA crosses 50% of basic pay, HRA rates are revised:
Common questions about Dearness Allowance for Central Government employees and pensioners.
Dearness Allowance is a cost-of-living adjustment allowance paid by the Government of India to its employees and pensioners. It is designed to offset the impact of inflation on the purchasing power of government employees. DA is calculated as a percentage of the basic pay and is revised twice a year.
The current DA rate effective from January 1, 2026 is 60% of basic pay. This was increased from the previous rate of 58% (effective July 2025), representing a 2% hike approved by the Union Cabinet.
Yes, Dearness Allowance is fully taxable under the Income Tax Act. It is added to your gross salary and taxed according to your applicable income tax slab. DA is also considered for calculating retirement benefits like gratuity and pension when it forms part of the basic pay.
DA (Dearness Allowance) is paid to serving government employees, while DR (Dearness Relief) is the equivalent paid to pensioners. Both are revised at the same rate and at the same time, effective January 1 and July 1 each year.
When DA crosses 50% of basic pay (which happened in January 2024), HRA rates are revised upward. Currently, HRA is 27% for X cities (metro), 18% for Y cities, and 9% for Z cities. DA is also factored into Transport Allowance and other allowances.
The next DA revision is expected to be effective from July 1, 2026. The announcement typically comes a few months after the effective date. Based on current CPI-IW trends, the expected DA rate is estimated to be around 62-63%.
AICPI-IW stands for All India Consumer Price Index for Industrial Workers. It measures the average change in prices of goods and services consumed by industrial workers. The 12-month average of AICPI-IW (base year 2016=100) is used in the DA formula to determine the DA percentage for Central Government employees under the 7th Pay Commission.