DA hike calculator: Check how much salary and arrears Level 1-10 employees could get if DA rises to 63%

The Labour Bureau has released the June 2026 data putting the All India Consumer Price Index for Industrial Workers (AICPI-IW) at 151.9. This takes the 12-month average index to 148.65, resulting in a DA calculation of 63.76%. Since DA is announced in whole numbers, central government employees are anticipating the next DA rate to be 63%, subject to government approval.

Dearness Allowance is calculated using the 12-month average of the AICPI-IW index. The latest index values are first converted to the 2001 base year using the 2.88 linking factor, after which the prescribed DA formula is applied. Based on the latest figures, the calculated DA works out to 63.76%, which is expected to be rounded down to 63%.

If DA rises from 60% to 63%:
*Level 1: Monthly DA increases by ₹540; estimated 6-month arrears: ₹3,240
*Level 2: Monthly DA increases by ₹597; estimated 6-month arrears: ₹3,582
These figures are based on the minimum basic pay for each level.

Estimated increase if DA reaches 63%:
*Level 3: ₹651/month, arrears ₹3,906
*Level 4: ₹765/month, arrears ₹4,590
*Level 5: ₹876/month, arrears ₹5,256
The higher the basic pay, the larger the increase in DA amount.

Based on the projected 63% DA:
*Level 6: ₹1,062/month, arrears ₹6,372
*Level 7: ₹1,347/month, arrears ₹8,082
*Level 8: ₹1,428/month, arrears ₹8,568
Actual payouts will depend on the government's final notification.

If the government approves 3% hike taking DA to 63%:
*Level 9: Monthly increase ₹1,593, estimated arrears ₹9,558
*Level 10: Monthly increase ₹1,683, estimated arrears ₹10,098
Employees in higher pay levels receive larger DA increases because DA is calculated as a percentage of the basic pay.

Yes. Central government employees will continue receiving DA under the 7th Pay Commission until the 8th Pay Commission's revised pay structure is implemented. Future DA revisions will depend on movements in the AICPI-IW index and government approval.

Although the latest AICPI-IW figures point to a 63% DA, the increase is not yet official. The revised DA will take effect only after the Union Cabinet approves the proposal based on the Finance Ministry's recommendation. Until then, the figures remain illustrative estimates based on the latest inflation data.