How DA is set

DA compensates government employees for inflation. It is computed from the All-India Consumer Price Index for Industrial Workers (AICPI-IW), published monthly by the Labour Bureau (labourbureau.gov.in). The Department of Expenditure notifies the revised rate twice a year — effective 1 January and 1 July — usually announced two to three months later, with the difference paid as arrears (DoE orders).

Pensioners receive the same percentage as Dearness Relief (DR) on basic pension.

Frequently asked questions

What is the current DA rate for Central Government employees?

The Dearness Allowance rate is 60% of basic pay, effective 1 January 2026. DA is revised twice a year, in January and July.

How is DA calculated?

DA % = [(average AICPI-IW for the past 12 months − 261.42) ÷ 261.42] × 100, using the 2016=100 index series. The result is rounded and notified by the Department of Expenditure.

When is the next DA revision?

The next revision is due from 1 July 2026, typically announced around September–October 2026. However, if the 8th CPC is implemented with effect from January 2026, DA would reset to 0% on the revised basic pay.

Is DA taxable?

Yes, DA is fully taxable as part of salary income for serving employees.