This DA Calculator i.e. Dearness Allowance Calculator is for the use of government employee in India. Dearness Allowance (DA) is a cost of living adjustment provided to government employees in India. It’s linked to the Consumer Price Index (CPI) and is intended to neutralize the impact of inflation on their salaries. The DA rate is revised periodically by the government. This tool is also known as Dearness Allowance Calculator, DA formula, DA calculation etc.







How to Use the DA Calculator:

1. Enter Basic Pay: Input your current basic pay.
2. Enter DA Rate: Enter the current DA rate (in percentage).
3. Click Calculate: Click the “Calculate” button to instantly see your DA amount.

 

DA Formula:

The DA is calculated using the following formula:

DA Amount = (Basic Pay * DA Rate) / 100

Example:

If your basic pay is ₹30,000 and the current DA rate is 42%, your DA will be:

DA Amount = (30000 * 42) / 100 = ₹12,600

Stay Updated on DA Rates:

Keep informed about the latest DA rate revisions in India. We will make an effort to update our calculator to reflect the most recent rates.

Disclaimer:

This DA calculator is for informational purposes only and should not be considered financial advice. Always consult with a financial professional for personalized guidance.

 

 

Dearness Allowance (DA) & Arrears

Dearness Allowance (DA) plays a key role in government salaries and pensions. This guide explains what DA is, how DA arrears are calculated, and how you can quickly estimate your arrear amount using a calculator.

 

What Is Dearness Allowance (DA)?

Dearness Allowance (DA) is a cost-of-living adjustment paid to Central Government employees, State Government employees, and pensioners. Its purpose is simple: to protect your salary from inflation.

As prices rise, DA increases so your purchasing power stays intact.

Example:
If your Basic Pay is ₹50,000 and DA is 50%, your DA equals ₹25,000 per month.

 

How Often Is DA Revised?

DA is revised twice a year:

• 1 January
• 1 July

The revision is based on the Consumer Price Index (CPI), which measures inflation. Although the new rate applies from the effective date, the official notification is usually issued later—this delay leads to DA arrears.

 

What Are DA Arrears?

DA arrears are the back-payments you receive for the period between:

• The effective date of the DA hike, and
• The date the government issues the notification

Example:
If DA is effective from January 1 but announced in November, you receive arrears for January to November.

 

DA Arrear Calculation Formula

DA Arrear = (New DA% − Old DA%) × Basic Pay × Months ÷ 100

Where:

• Basic Pay = Salary excluding allowances
• Months = From effective date to notification date

 

Practical Examples

Example 1: Central Government Employee

• Basic Pay: ₹75,000
• DA increases from 46% to 50%
• Effective: January | Notified: March

Arrear = (4% × 75,000 × 3) ÷ 100 = ₹9,000

 

Example 2: Pensioner

• Pension (Basic equivalent): ₹60,000
• DA increases from 48% to 50%
• Effective: July | Notified: September

Arrear = (2% × 60,000 × 3) ÷ 100 = ₹3,600

 

Example 3: Leave or Suspension

DA arrears are still calculated on Basic Pay, even if you were on leave during the arrear period.

 

How DA Impacts Other Salary Components

A DA hike affects more than just take-home pay:

• HRA: Recalculated when DA crosses thresholds (e.g., 50%)
• Travel Allowance: Some components are DA-linked
• NPS: Contributions increase as they are based on (Basic + DA)
• Income Tax: DA arrears are taxable in the year received

 

Special Situations

• Promotion during arrear period: Arrears are calculated on old and new Basic Pay for respective months
• Joined mid-year: Arrears apply only from your joining date
• Leave Without Pay (LWP): Generally paid on the Basic Pay of the post held
• State Government employees: DA rules are similar but may vary by state

 

Latest DA Status & 8th Pay Commission

• As of January 2026, DA under the 7th Pay Commission is 50%
• At 50% DA:
  • HRA resets
  • Other allowances may be revised
• The 8th Pay Commission (expected 2026–27) may:
  • Increase Basic Pay by 80–100% (fitment factor)
  • Reset DA to near 0%, which will rise again over time

 

Conclusion

DA protects your salary from inflation, and DA arrears ensure you don’t lose money due to delayed announcements. Understanding both helps you plan your income better and avoid surprises.

 

Frequently Asked Questions

Do pensioners get DA arrears?
Yes, pensioners are eligible for DA arrears.

Are DA arrears taxed separately?
No. They are added to your income in the year received.

Does leave affect DA arrears?
No. Arrears are paid regardless of leave status.

What happens to DA after promotion?
The DA percentage stays the same but applies to your higher Basic Pay.