DA for Indian government employees hiked by 3%
What's the story
The Indian government has announced a hike in the dearness allowance (DA) for its employees. The DA will now be 63%, up from the previous rate of 60%. This increase is applicable for the July-December 2026 period. The move is aimed at providing better financial support to government workers, especially those in the lower pay scales.
Salary adjustment
Impact on salaries of Level 1 employees
The DA hike will have a direct impact on the salaries of government employees.
For instance, a Level 1 employee, who was getting around ₹10,800 as DA at 60%, will now get an increased amount of ₹11,340.
This translates to an increase of ₹540 in their monthly salary.
The revised DA rate is based on the average retail inflation over the last 12 months.
Applicability period
Revised DA rate applicable for July-December 2026 period
The revised DA rate of 63% will be applicable for the July-December 2026 period.
Employees are likely to receive DA arrears for the July-October period along with their salary at the end of November.
This is because pay is calculated from the 15th of one month to the next.
The decision comes after a long wait by government employees and pensioners across India.
Salary impact
Hike will also benefit Level 2-10 employees
The DA hike will also affect the salaries of Level 2-10 employees.
For a Level 2 employee with a minimum basic pay of ₹19,900 per month, the DA amount at 60% was ₹11,940 and will now be ₹12,537, an increase of ₹597.
Similarly, for a Level 3 employee with a minimum basic pay of ₹21,700 per month, the DA amount at 60% was ₹13,020 and will now be ₹13,671, an increase of ₹651.
Others
More on the impact of DA hike for other levels
The DA hike will also affect the salaries of Level 4-10 employees.
For a Level 4 employee with a minimum basic pay of ₹25,500 per month, the DA amount at 60% was ₹15,300 and will now be ₹16,065, an increase of ₹765.
For a Level 5 employee with a minimum basic pay of ₹29,200 per month, the DA amount at 60% was ₹17,520 and will now be ₹18,396, an increase of ₹876.