DA Hike: As millions of employees eagerly await the decisions from the 8th Pay Commission, there’s some positive news to share. The central government has raised the dearness allowance (DA) for those on the older pay scales of the 5th and 6th Pay Commissions. On October 29, 2026, the Department of Expenditure, Ministry of Finance, issued separate orders regarding this change. The new rates will take effect from July 1, 2026, leading to increased dearness allowances for eligible employees each month.
DA of 5th Pay Commission increased by 497%
The dearness allowance for employees on the old pay scale of the 5th Central Pay Commission has been raised from 483% to 497%, marking a 14 percent increase in DA. For instance, if an employee’s basic pay, which is the basis for calculating DA, is Rs 10,000, they used to receive Rs 48,300 in dearness allowance at the 483% rate. Now, with the new rate of 497%, they will receive Rs 49,700 in DA. This translates to an additional benefit of Rs 1,400 each month.
DA of those under the Sixth Pay Commission increased by 269%
For employees on the old pay scales and grade pay of the Sixth Central Pay Commission, the dearness allowance has been increased from 262% to 269%, reflecting a rise of 7 percentage points. For example, if an employee’s basic pay and grade was Rs 20,000, he had previously received DA of Rs 52,400 at the rate of 262%. With the new rate, it will go up to Rs 53,800. Thus, the employee will receive Rs 1,400 more in dearness allowance each month.
New rates effective from July 1, 2026
According to the Finance Ministry\’s order, the increased rates of dearness allowance are effective July 1, 2026. This increase will also be effective from July 1, 2026. However, the latest issued fifth and sixth pay commission orders are applicable only to the employees who are still drawing salary as per their old pay scales.