How to calculate DA on basic salary
DA is a straight percentage of basic pay: DA = Basic pay × DA% ÷ 100. At the current DA rate of 60%, an employee with a basic pay of ₹50,000 draws ₹30,000 as Dearness Allowance every month. No allowance other than basic pay enters the calculation — HRA, transport allowance and NPA are computed separately (TA does attract DA on top of the slab amount).
Current DA and previous DA rate
The current DA/DR for central government employees and pensioners is 60% from 1 January 2026, a 2% increase over the previous rate of 58% which applied from 1 July 2025. This was the first DA instalment released after the 7th CPC term ended, and the 60% figure also fixes the base on which the 8th CPC fitment factor will be built.
How to calculate DA arrears
Because a DA instalment is notified months after its effective date, employees receive arrears for the intervening months. Use (new DA% − old DA%) × basic pay ÷ 100 × months. For a basic pay of ₹35,400 moving from 58% to 60% over 3 months, arrears work out to ₹708 × 3 = ₹2,124.
DA vs Dearness Relief (DR)
Serving employees receive DA on basic pay; pensioners receive Dearness Relief at the same percentage on basic pension. Family pensioners also draw DR at the identical rate. Use the pension calculator for DR on pension and the pension arrear calculator for back-dated DR.
What happens to DA under the 8th Pay Commission
The 8th Central Pay Commission was constituted on 3 November 2025 and its recommendations are expected to apply from 1 January 2026 once notified. As in every previous revision, the DA accumulated under the 7th CPC gets merged into the new basic pay through the fitment factor, and DA restarts from zero against the revised pay matrix. Model the effect with the fitment factor calculator.