DA Hiked to 60% from January 2026: Finance Ministry Issues Office Memorandum

The Government of India has approved an increase in Dearness Allowance (DA) for Central Government employees, raising it from the existing 58% to 60% of Basic Pay. The revised rates will be effective from 1st January 2026, as per an Office Memorandum issued by the Ministry of Finance, Department of Expenditure on 22nd April 2026.

Key Highlights of the Order

The decision has been taken by the President to provide relief against inflation to Central Government employees. The enhancement in DA will result in a 2% increase over the current rate.

Definition of Basic Pay

The order clarifies that “Basic Pay” refers to the pay drawn in the prescribed level in the Pay Matrix as per the recommendations of the 7th Central Pay Commission. It does not include any other type of pay such as special pay or allowances.

DA to Remain a Separate Component

Dearness Allowance will continue to be treated as a distinct element of remuneration. It will not be considered as pay under the provisions of FR 9(21), ensuring its separate identity in salary calculations.

Rounding Off of DA

The memorandum specifies that:

• Fractions of 50 paise and above in DA calculations will be rounded off to the next higher rupee.
• Fractions below 50 paise will be ignored.

Applicability

The revised DA rates will apply to:

• Civilian Central Government employees paid from the Defence Services Estimates
• Employees under Indian Audit and Accounts Department, in consultation with the Comptroller and Auditor General of India

Separate orders will be issued for Armed Forces personnel and Railway employees by the respective ministries.

Administrative Details

The Office Memorandum has been issued from Kartavya Bhavan, New Delhi, and signed by Deputy Secretary Samir Kumar Das. It has been circulated to all Ministries and Departments of the Government of India, along with standard endorsement copies to key constitutional and administrative authorities.

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This DA hike is part of the periodic revisions undertaken by the government to offset the impact of rising prices and ensure that employees’ real income remains stable.

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