New Delhi: The Government of India has enhanced the Dearness Allowance (DA) for Central Government employees from 58% to 60% of the basic pay with effect from January 1, 2026, as per an Office Memorandum issued by the Ministry of Finance, Department of Expenditure.
According to the office memorandum issued by Finance Department of GOI, the term “Basic Pay” refers to the pay drawn in the prescribed level in the Pay Matrix as per the 7th Central Pay Commission recommendations and does not include any other form of pay such as special pay.
The memorandum further clarifies that the Dearness Allowance will remain a distinct component of remuneration and will not be treated as pay under the ambit of relevant financial rules.
It also states that DA payments involving fractions of 50 paise and above will be rounded off to the next higher rupee, while fractions below 50 paise will be ignored.
The order specifies that these provisions will also apply to civilian employees paid from Defence Services Estimates, while separate orders will be issued for Armed Forces personnel and Railway employees.
Additionally, in respect of employees of the Indian Audit and Accounts Department, the orders have been issued in consultation with the Comptroller and Auditor General of India as mandated under Article 148(5) of the Constitution. — (KNC)
