Business
3% DA Hike: How Much Will Salaries Of Central Govt Employees Increase? Check Salary Calculation
By: News18 Business
Published: 28 October 2026
Photo / Illustration: Haldwani Times News Desk
<p>DA Hike July 2026: The central government on Wednesday announced a 3% increase in dearness allowance (DA) and dearness relief (DR) to boost the salaries of central government employees and raise income for pensioners. With the latest revision, the DA rate is assumed to increase from 60% to 63% of basic pay. This means an employee with a basic salary of Rs 18,000 will receive an additional Rs 540 per month, while the monthly increase for someone drawing a basic salary of Rs 56,100 will be Rs 1,683.</p>
<p>DA Hike 2026: How Much Will Your Salary Increase?</p>
<p>The benefit of a 3-percentage-point increase in DA is calculated by applying the additional 3% to an employee’s basic pay. For example, an employee with a basic salary of Rs 30,000 will receive an additional Rs 900 per month. At a basic salary of Rs 40,000, the monthly increase will be Rs 1,200.</p>
<p>Here is how the increase works at different basic pay levels, assuming the DA rate rises from 60% to 63%:</p>
<p>Dearness Allowance is calculated as a percentage of basic pay. Therefore, a 3-percentage-point increase in the DA rate translates into an additional amount equal to 3% of basic pay.</p>
<p>The formula is: Monthly increase in DA = Basic pay × 3 ÷ 100</p>
<p>For an employee drawing a basic salary of Rs 18,000, the calculation would be:</p>
<p>Similarly, an employee with a basic salary of Rs 56,100 would receive an additional Rs 1,683 per month, equivalent to Rs 20,196 over 12 months if the revised rate applied throughout the year.</p>
<p>DA Hike 2026: Will Employees Receive Arrears?</p>
<p>The effective date of the revised DA rate is July 1, 2026, thus government employees will also be getting arrears since July 2026. For an employee with a basic salary of Rs 18,000, the additional DA would amount to Rs 540 for each eligible month. The amount would be Rs 2,160 for four months since July 2026.</p>
<p>What Is Dearness Allowance, And Why Is It Revised?</p>
<p>Dearness Allowance is paid to government employees to help offset the impact of inflation on their purchasing power. Pensioners receive a corresponding benefit known as Dearness Relief.</p>
<p>The Centre generally reviews DA and DR twice a year, with revisions typically taking effect from January 1 and July 1. The calculation is linked to changes in the All India Consumer Price Index for Industrial Workers (AICPI-IW), under the prescribed formula.</p>
<p>The increase in DA is separate from any future changes to the broader salary structure under a new Pay Commission.</p>
<p>The central government announced a 3% increase in dearness allowance (DA) and dearness relief (DR), raising the DA rate from 60% to 63% of the basic pay effective July 1, 2026.</p>
<p>Since the revised DA rate is effective from July 1, 2026, government employees are entitled to receive arrears starting from that month, amounting to Rs 540 per month for someone with an 18,000 basic salary.</p>
