DA Arrear Calculator
Calculate Dearness Allowance (DA) arrears under the 7th and 8th Pay Commissions quickly and accurately. Enter your old and new DA percentages along with your Basic Pay to find total arrears owed.
How to Use the DA Arrear Calculator
Step-by-Step Instructions
Complete Guide to Dearness Allowance (DA) and Arrear Calculations
This guide explains what Dearness Allowance (DA) is, how DA arrears are calculated, and how to use our calculator to find your exact arrear amount. Whether you're a Central Government employee, State employee, or pensioner, understanding DA is crucial for your salary planning.
1. What is Dearness Allowance (DA)?
Dearness Allowance (DA) is a cost-of-living adjustment provided by the Government of India to all Central Government employees, State Government employees, and pensioners. Its primary purpose is to offset the impact of inflation on the purchasing power of government employees.
Think of DA as a periodic salary boost that keeps your income aligned with rising prices. As inflation increases, your DA increases proportionally. This ensures that your real salary (purchasing power) doesn't decline even as prices of goods and services rise.
Key fact: DA is expressed as a percentage of your Basic Pay. For example, if your Basic Pay is ₹50,000 and DA is 50%, your monthly DA is ₹25,000.
2. How Often is DA Revised and Who Decides?
DA revisions happen twice per year — on January 1st and July 1st. The Government of India's Department of Personnel and Training (DoPT) announces new DA rates based on the Consumer Price Index (CPI), which measures inflation across the country.
Process:
- The Ministry of Labour & Employment calculates the average CPI for a set reference period.
- Based on this CPI, a new DA percentage is calculated using a fixed formula.
- DoPT issues an official notification announcing the new DA rate.
- The new DA rate typically becomes effective from the 1st of the month.
Example timeline: If a DA hike is announced in November for January 1st effect, employees receive DA arrears (back-pay) for January 1st to November 30th when the notification is issued.
3. Understanding DA Arrears
DA Arrears are the difference between the old DA rate and the new DA rate, calculated for all months from the effective date of the new rate until the notification is officially issued.
Why do arrears happen? Government notifications typically lag behind the effective date. For instance:
- New DA becomes effective on January 1st.
- Official notification is issued on November 15th.
- Arrears cover the gap: January to November (11 months).
Using our calculator, you can instantly compute your arrear amount without manual calculation.
4. DA Arrear Calculation Formula
Arrear = (New DA% - Old DA%) × Basic Pay × Number of Months ÷ 100
Where:
- New DA% = The new DA percentage announced by the government.
- Old DA% = The DA percentage that was in effect before the hike.
- Basic Pay = Your basic salary (not including allowances or deductions).
- Number of Months = Months from effective date to notification date.
5. Real-World Examples
Example 1: Central Govt Employee
Situation: You are a Level 6 employee with Basic Pay ₹75,000. DA increases from 46% to 50% effective January 1st, and the notification is issued on March 15th.
Calculation:
- New DA% = 50%
- Old DA% = 46%
- Difference = 4%
- Months = 3 (January, February, March)
- Arrear = (4% × ₹75,000 × 3) ÷ 100 = ₹9,000
Result: You receive ₹9,000 as DA arrear along with March salary.
Example 2: Pensioner
Situation: You are a retired employee receiving pension of ₹60,000 (includes Basic equivalent and DA). DA increases from 48% to 50% effective July 1st, and notification comes on September 20th.
Calculation:
- New DA% = 50%
- Old DA% = 48%
- Difference = 2%
- Months = 3 (July, August, September)
- Arrear = (2% × ₹60,000 × 3) ÷ 100 = ₹3,600
Result: Your pension arrear for 3 months is ₹3,600.
Example 3: Employee on Leave/Suspension
Situation: DA increases from 47% to 51% effective May 1st. You were on sick leave during May and June, then returned in July. Notification issued in September.
Important Note: DA arrears are calculated on your Basic Pay even if you were on leave. Government ensures you get full arrear benefit.
Calculation: (4% × Basic Pay × 5 months [May to September]) ÷ 100
6. How DA Changes Impact Other Allowances
DA is not just a standalone allowance — it affects other components of your salary:
- HRA (House Rent Allowance): When DA reaches certain thresholds (e.g., 50%), HRA is recalculated. HRA arrears also get adjusted accordingly.
- TA (Travel Allowance): Some TA components are linked to DA. A DA hike can trigger TA adjustments for travel to distant places.
- NPS Contribution: Your employee and employer NPS contributions are based on (Basic + DA). A DA increase means higher NPS savings.
- Income Tax: DA arrears are added to your income in the financial year they're received, potentially affecting your tax liability.
7. Special Cases & Exceptions
Promoted Employees During DA Hike
If you were promoted between the effective date and notification date, DA arrear is calculated on both your old and new Basic Pay for the respective periods.
Employees Who Joined Mid-Year
If you joined in June and DA increased in January, you don't get arrear for pre-joining months. Arrear is calculated only from your joining date.
Employees on Leave Without Pay (LWP)
General rule: DA is paid on the Basic Pay of the position you hold, regardless of leave status. Check with your HR/PAO office to confirm in your specific case.
State Government vs Central Government
While the DA formula is similar, State governments may have slight variations in rates, effective dates, and calculation methods. Use state-specific rates in our calculator where applicable.
8. Latest DA Updates and 8th Pay Commission
As of January 2026, DA for Central Government employees under the 7th Pay Commission stands at 50%. At this level, several salary components undergo reset:
- HRA Reset: When DA hits 50%, HRA is recalculated, often resulting in a decrease from earlier percentages.
- Fitment Factor: The 8th Pay Commission, expected in 2026-27, will introduce a new pay scale with a fitment factor (likely 1.80–2.00x). This means Basic Pay could increase by 80–100%.
- DA Reset: When 8th CPC is implemented, DA typically resets to near 0% and then increases over time. Our calculator supports both 7th and projected 8th CPC scenarios.
9. Frequently Asked Questions
Q: Can I claim DA arrears as a separate TDS (tax deduction)?
A: DA arrears are typically clubbed with regular salary for that financial year and taxed accordingly. Consult your HR/Income Tax officer for detailed guidance based on your income slab.
Q: How do I check if my DA arrear was calculated correctly?
A: Use our calculator with your Basic Pay, old DA%, new DA%, and months. Cross-verify with your latest payslip or contact your Pay & Accounts Office (PAO).
Q: What if I was on vacation during the DA announcement?
A: DA arrears are paid regardless of your leave status during the arrear period. You get the full arrear based on your position and Basic Pay.
Q: Do pensioners get DA arrears?
A: Yes, pensioners receive DA arrears just like serving employees. However, if your pension is fixed (not revised), arrears may apply only to the DA component.
Q: When will 8th Pay Commission be implemented and how will it affect DA?
A: The 8th CPC is expected in 2026-27. Upon implementation, DA will reset closer to 0%, and your Basic Pay will jump significantly (typically by 80–100% via fitment factor). Our calculator supports 8th CPC projections.
Q: Is this calculator applicable to State Government employees?
A: Our calculator works for Central Government employees and State employees following similar pay matrices. However, some states may have different DA schedules or calculation methods. Always verify with your state's government notification.
Q: What happens to DA if I get promoted?
A: Upon promotion, your DA % remains the same, but it applies to your new (higher) Basic Pay. DA arrears after promotion are calculated on your new Basic Pay for the arrear period.
Using the Indian Pay Calculator
To calculate your exact DA arrear, enter:
- Basic Pay: Your monthly basic salary (from payslip).
- Old DA %: The DA % before the hike.
- New DA %: The new DA % announced.
- Number of Months: Months from effective date to notification date.
The calculator will instantly show your arrear amount, broken down by month if needed.
Disclaimer & Sources
This information is based on official Government of India, Department of Personnel and Training (DoPT) notifications and 7th Pay Commission guidelines. While we strive for accuracy, calculations are for informational purposes only. For official confirmation, consult your Pay & Accounts Office (PAO) or refer to official government notifications.