Dearness allowance (DA) offsets inflation. It is a straight percentage of your basic pay, revised twice a year — normally from 1 January and 1 July. The current rate is 60%, effective 1 January 2026.
Calculate your salary7th Pay Matrix
How DA is calculated
DA = Basic pay × 60 ÷ 100Nothing else enters the calculation. HRA, transport allowance and overtime are all worked out separately — DA never sits on top of them.
DA = 35,400 × 60 ÷ 100 = ₹21,240 per month.
Running staff
For running staff the 30% pay element is added to basic pay first, and DA is calculated on that higher figure. On a basic pay of ₹35,400, the pay element is ₹10,620, so DA is worked out on ₹46,020 instead of ₹35,400. This is why running staff DA is noticeably higher than stationary staff on the same basic pay.
How DA changes your HRA
HRA is not a fixed percentage. It steps up as DA crosses 25% and then 50%. With DA at 60%, HRA is at the highest slab.
| DA level | X city | Y city | Z city |
|---|---|---|---|
| DA 50% and above ← current | 30% | 20% | 10% |
| DA 25% and above | 27% | 18% | 9% |
| DA Below 25% | 24% | 16% | 8% |
X cities are the largest metros, Y cities are other large cities, and Z covers the rest. Your headquarters decides which class applies to you.
DA arrears
A DA order almost always arrives after its effective date. The months in between are paid as arrears.
Monthly arrear = Basic pay × (new DA% − old DA%) ÷ 100Multiply by the number of months, then add them up.
If your basic pay changed during that period — because of an increment or a promotion — work out each month on the basic pay that actually applied in that month, not on your current pay.
When DA is revised
DA is revised twice a year, from 1 January and 1 July. The rate is derived from the All India Consumer Price Index for Industrial Workers, so the figure is only known when the government issues the order. The next revision is due from July 2026.
Common questions
What is the current DA rate?
Dearness allowance is currently 60% of basic pay, effective 1 January 2026. DA is revised twice a year, normally from 1 January and 1 July, and the order is usually issued some months after the effective date.
How is DA calculated on basic pay?
DA is a straight percentage of basic pay: DA = basic pay multiplied by 60 divided by 100. Nothing else enters the calculation — not HRA, not transport allowance, not overtime. For running staff, the 30% pay element is added to basic pay first, and DA is then calculated on that higher figure.
When will DA increase next?
The next revision is due from July 2026. DA is calculated from the All India Consumer Price Index for Industrial Workers, so the exact figure is only known once the government issues the order. Any increase applies from the effective date, and the months already past are paid as arrears.
Does DA affect my HRA?
Yes. HRA slabs step up as DA crosses 25% and 50%. Because DA is now 60%, which is above 50%, HRA is at the highest slab: 30% for X cities, 20% for Y cities and 10% for Z cities.
How are DA arrears calculated?
When DA is revised with effect from a past date, the difference between the new rate and the old rate is paid for every month from the effective date until the month the revised DA starts appearing in your salary. For each month, the arrear is basic pay multiplied by the difference in DA percentage. Add the months together to get the total.
Is DA taxable?
Yes. Dearness allowance is fully taxable as part of your salary income, and DA arrears are taxable in the year they are received. Relief under section 89(1) may be available on arrears relating to earlier years.
Calculate it for your own pay
RailStaff's free calculators work out overtime, night duty allowance, kilometre allowance, leave encashment, arrears and your in-hand salary — and the running journal keeps your T-26B duty record.