7th Pay Commission: DA Hiked to 60% From January 2026, Check Salary Increase Across Levels
The Ministry of Finance has approved a 2% hike in Dearness Allowance (DA) for central government employees, raising it from 58% to 60% of Basic Pay. The revised rates are effective from January 1, 2026, following approval by the President based on a proposal dated October 6, 2025.
The Ministry of Finance has approved a 2% hike in Dearness Allowance (DA) for central government employees, raising it from 58% to 60% of Basic Pay. The revised rates are effective from January 1, 2026, following approval by the President based on a proposal dated October 6, 2025.
The increase will benefit nearly 50 lakh central government employees and about 65 lakh pensioners, including defence personnel and retirees. The revised DA will also apply to civilian employees paid from Defence Services estimates, with separate orders expected for armed forces and railway staff. 8th Pay Commission Salary Hike: Will Minimum Pay Reach INR 72,000?
What is Dearness Allowance (DA)?
Dearness Allowance is a cost-of-living adjustment paid to government employees and pensioners to offset inflation. It is revised twice a year based on the All-India Consumer Price Index (AICPI), typically in March and October, with effect from January and July. 8th Pay Commission News: Stakeholder Meetings To Begin in Delhi on April 28.
Salary Increase After 2% DA Hike
| Employee Level | Basic Pay (INR) | Current Salary (INR) | Salary After Hike (INR) | Increase (INR) |
|---|---|---|---|---|
| Level 1 | 18,000 | 28,440 | 28,800 | 360 |
| Level 2 | 19,900 | 31,442 | 31,840 | 398 |
| Level 3 | 21,700 | 34,286 | 34,720 | 434 |
| Level 4 | 25,500 | 40,290 | 40,800 | 510 |
| Level 5 | 29,200 | 46,136 | 46,720 | 584 |
| Level 6 | 35,400 | 55,932 | 56,640 | 708 |
| Level 7 | 44,900 | 70,942 | 71,840 | 898 |
| Level 8 | 47,600 | 75,208 | 76,160 | 952 |
| Level 9 | 53,100 | 83,898 | 84,960 | 1,062 |
| Level 10 | 56,100 | 88,638 | 89,760 | 1,122 |
| Level 11 | 67,700 | 106,966 | 108,320 | 1,354 |
| Level 12 | 78,800 | 124,504 | 126,080 | 1,576 |
| Level 13 | 123,100 | 194,498 | 196,960 | 2,462 |
| Level 13A | 131,100 | 207,138 | 209,760 | 2,622 |
| Level 14 | 144,200 | 227,836 | 230,720 | 2,884 |
| Level 15 | 182,200 | 287,876 | 291,520 | 3,644 |
| Level 16 | 205,400 | 324,532 | 328,640 | 4,108 |
| Level 17 | 225,000 | 355,500 | 360,000 | 4,500 |
| Level 18 | 250,000 | 395,000 | 400,000 | 5,000 |
How DA is Calculated
DA is calculated as a percentage of Basic Pay under the 7th Pay Commission framework. Basic Pay refers only to the pay drawn in the prescribed Pay Matrix level and excludes special pay or allowances. Any DA amount involving 50 paise or more is rounded up to the next rupee, while amounts below 50 paise are ignored.
Who Will Benefit?
The DA hike will directly increase monthly take-home salaries and pensions, offering partial relief against rising inflation. Government employees, defence personnel, and pensioners will all benefit from this revision.
With inflation trends remaining a key concern, further revisions in DA are expected later in 2026 as per the biannual review cycle.
(The above story first appeared on LatestLY on Apr 27, 2026 07:31 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).