DA Calculator
Updated November 2026 · Free · No sign-up
Calculate your Dearness Allowance (DA) — the inflation-linked component for central government employees and pensioners: DA amount from your basic pay, the AICPIN formula behind each revision, and the DA-on-gross effect.
Quick answer: DA = basic pay × current DA rate. The rate revises every January and July from AICPIN (CPI-IW) data. On a ₹35,400 basic at a 58% rate, DA = ₹20,532/month. Enter your basic and the current announced rate below.
How DA Is Set (The AICPIN Formula)
DA for central government employees follows a fixed formula on the All India Consumer Price Index for Industrial Workers (CPI-IW):
DA% = [(12-month average of AICPIN − 261.42) ÷ 261.42] × 100 (base 2016=100 series, where 261.42 is the linked 7th CPC base)
The government announces the result twice a year — effective 1 January and 1 July — usually with a 2-3 month announcement lag (March and September-October cabinet approvals), which creates the arrears everyone then calculates.
Worked Examples
Example 1 — monthly DA. Basic ₹35,400 at 58%: ₹20,532/month, ₹2,46,384/year — typically the second-largest line on a central govt payslip.
Example 2 — a 3-point hike. 55% → 58% on the same basic: +₹1,062/month. Modest alone — but HRA thresholds, gratuity ceiling bumps, and allowance triggers historically fire at 25%/50% DA milestones, so the rate matters beyond the rupees.
Example 3 — pensioners (DR). Dearness Relief uses the same rate on basic pension: ₹24,000 pension at 58% = ₹13,920 DR. DA and DR move together.
DA Facts That Answer Most Questions
| Question | Answer |
|---|---|
| Revision dates | 1 Jan and 1 Jul (announced ~Mar and ~Sep-Oct → arrears paid) |
| Taxable? | Fully taxable for serving employees |
| Counts for PF/pension? | Yes — NPS/UPS and retirement benefits compute on basic+DA |
| Counts for HRA? | No — HRA computes on basic only (central govt) |
| Private sector? | Only where pay structures include DA (PSUs, banks use different index/formulas) |
| 8th CPC effect | DA resets to 0 and merges into new basic — see the 8th CPC calculator |
Why the Announcement Lags (and What Arrears Follow)
The Jan-effective rate needs AICPIN data through December, published with a lag, then cabinet approval — so the increase lands in March-April pay with 2-3 months of arrears as a lump sum. September-October repeats it for the July rate. The DA arrears calculator computes that exact payment, including the NPS deduction interplay.
Bank and PSU DA (Different Animals)
Bank employees' DA revises quarterly (Feb/May/Aug/Nov) on a different CPI linkage and percentage-slab system under bipartite settlements. CPSE executives follow IDA (Industrial DA) revised quarterly too. The formula on this page is specifically the central government CDA pattern — don't cross-apply.
DA in Your Broader Pay Math
- Gratuity and leave encashment use basic+DA — a DA hike quietly raises exit benefits (gratuity calculator).
- NPS/UPS contributions (10% + 14%) ride basic+DA — every revision compounds retirement savings.
- Overtime and encashment formulas in government service key off basic+DA as well.
Frequently Asked Questions
How is DA calculated?
Basic pay × the announced DA rate. The rate itself comes from the AICPIN formula: [(12-month avg CPI-IW − 261.42) ÷ 261.42] × 100, revised each January and July.
What is the current DA rate?
It changes twice a year — enter the latest announced rate in the calculator (the default is indicative only; verify the most recent cabinet announcement).
Is DA taxable?
Yes — fully taxable as salary for serving employees. Dearness Relief for pensioners is taxable the same way.
Does DA count for HRA or PF?
DA counts for retirement contributions (NPS/UPS on basic+DA) and gratuity, but central govt HRA computes on basic pay only.
Why do I get DA arrears?
Rates apply from 1 Jan/1 Jul but are announced 2-3 months later — the gap months arrive as a lump-sum arrear in the implementation month.
What happens to DA under the 8th Pay Commission?
It resets to zero on implementation — accumulated DA merges into the new basic via the fitment factor.
✓ Formula verified • Last updated: November 3, 2026