DA Arrears Calculator 2026

How DA Arrears are calculated

Dearness Allowance is revised twice a year — effective 1 January and 1 July. The Government usually announces the hike 2–3 months after the effective date. Because the revised rate applies retrospectively from the effective date, you become entitled to the difference between the old rate and the new rate for the intervening months — this is called DA Arrears.

The formula

Worked example — January 2026 hike (actual)

Basic Pay ₹56,100, DA rose from 58% to 60% (a 2% hike), effective 1 January 2026. The Cabinet approved the hike in April 2026, so employees received arrears for January, February and March (3 months).

• DA difference = 60% − 58% = 2%
• Monthly arrear = ₹56,100 × 2 ÷ 100 = ₹1,122
• Total arrears = ₹1,122 × 3 = ₹3,366

Worked example — July 2026 hike (expected)

If DA rises from 60% to 63% effective 1 July 2026, and the order is issued in, say, September 2026, then arrears for July, August and September (3 months) are due.

• DA difference = 63% − 60% = 3%
• Monthly arrear (on ₹56,100) = ₹1,683
• Total arrears for 3 months = ₹5,049

For pensioners

Pensioners receive Dearness Relief (DR) instead of DA, but the rates and calculation are identical. Enter your Basic Pension in the Basic Pay field above to compute DR arrears.

Transport Allowance (TPTA) arrears

Transport Allowance has a DA component embedded in it. When DA rises, the DA portion of TPTA also rises. If you select “Yes” for TPTA above, the calculator adds this additional amount to your total arrears.

Tax on arrears — Form 10E

Arrears are taxable in the year of receipt. If receiving them in a lump sum pushes you into a higher slab, you can claim relief under Section 89(1) of the Income Tax Act by filing Form 10E before filing your ITR.

What about the 8th CPC DA merger?

The Staff Side of the NC-JCM has formally demanded that DA be merged into basic pay at the 25% threshold under the 8th CPC[reference:0]. The Government has not accepted this demand as of October 2026[reference:1]. If a merger does happen, accumulated DA is typically absorbed into the new basic pay and DA then restarts from 0% — a pattern seen in the 6th and 7th CPC transitions.