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.
| level | on basic | current salary | Salary with 2% hike | Difference |
|---|---|---|---|---|
| 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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