DA Hike: Government employees rejoice, increase in DA after a long wait; Know how much your salary will increase based on your pay level

DA Hike Latest Updates: The government has given very good news for the central employees. The Ministry of Finance has announced a 2% increase in the Dearness Allowance (DA) of government employees. Now DA has increased from 58% to 60%, which will be considered applicable from January 1, 2026. Lakhs of employees and pensioners will directly benefit from this. Let us know its details in detail.

Dearness Allowance i.e. DA (Dearness Allowance) is a part of the basic salary of the employees, which is given to reduce the effect of rising inflation. It is revised every 6 months and is calculated on the basis of All India Consumer Price Index (AICPI).

What is the impact of 2% DA increase on salary?

DA is directly applied on your basic pay, that is, an increase of 2% means that you will get an additional 2% of your basic salary every month.

Understand with simple example below

Level-1 Employee (Basic Pay ₹18,000)

First DA (58%) = ₹10,440

New DA (60%) = ₹10,800

Monthly increase = ₹360

Level-4 Employees (Basic Pay ₹25,500)

First DA = ₹14,790

New DA = ₹15,300

Monthly increase = ₹510

Level-7 Employees (Basic Pay ₹44,900)

First DA = ₹26,042

New DA = ₹26,940

Monthly increase ≈ ₹898

Level-10 Employees (Basic Pay ₹56,100)

First DA = ₹32,538

New DA = ₹33,660

Monthly increase = ₹1,122

That means, the higher the basic salary, the more benefits you will get.

levelon basiccurrent salarySalary with 2% hikeDifference
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₹1,06,966₹1,08,320₹1,354
Level 12₹78,800₹1,24,504₹1,26,080₹1,576
Level 13₹1,23,100₹1,94,498₹1,96,960₹2,462
Level 13A₹1,31,100₹2,07,138₹2,09,760₹2,622
Level 14₹1,44,200₹2,27,836₹2,30,720₹2,884
Level 15₹1,82,200₹2,87,876₹2,91,520₹3,644
Level 16₹2,05,400₹3,24,532₹3,28,640₹4,108
Level 17₹2,25,000₹3,55,500₹3,60,000₹4,500
Level 18₹2,50,000₹3,95,000₹4,00,000₹5,000

Who will get the benefit?

This DA increase will benefit approximately 50 lakh central employees and 65 lakh pensioners, which also includes defense personnel and railway employees.

Also read: Impact of decline in stock market, market cap of top-7 companies decreased by ₹ 2.16 lakh crore, TCS suffered the most loss.

What changes in DA calculation?

According to the government, DA will be considered a separate part of the salary. Amounts above 50 paise will be rounded off to the next rupee. Basic Pay will be the same as 7th pay commission As per Pay Matrix (No other allowance will be included).

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