https://v2.webnotes.in/categories/salaryRecent content in Salary on WebNotesHugoen-INMon, 29 Jun 2026 00:00:00 +0000https://v2.webnotes.in/dearness-allowanceMon, 29 Jun 2026 00:00:00 +0000https://v2.webnotes.in/dearness-allowance<p><strong>Dearness Allowance (DA) is an inflation-linked part of a central government salary, paid as a percentage of basic pay and revised twice a year, in January and July, against the All-India Consumer Price Index for Industrial Workers.</strong> As of 1 January 2026, DA is 60% of basic pay, after the Union Cabinet cleared a 2% rise over the earlier 58%. The equivalent paid to pensioners is Dearness Relief.</p> <aside class="callout callout--key" role="note"> <strong class="callout__label">Key facts</strong> <div class="callout__body"><ul> <li>Current DA is 60% of basic pay, with effect from 1 January 2026.</li> <li>DA is revised twice a year, effective 1 January and 1 July.</li> <li>The basis is the All-India CPI for Industrial Workers (AICPI-IW), base year 2016 equal to 100.</li> <li>Pensioners get the same adjustment as Dearness Relief (DR) on basic pension.</li> <li>DA is fully taxable as salary; the <a href="https://v2.webnotes.in/government-pension" rel="nofollow">pensioner DR</a> is taxable as pension.</li> </ul> </div> </aside> <h2 id="what-dearness-allowance-is">What dearness allowance is</h2> <p>Dearness allowance is the part of a central government salary that tracks the cost of living. Basic pay, fixed by the <a href="https://v2.webnotes.in/pay-commission-india">Pay Commission</a> , stays flat between commissions, but prices do not. DA bridges the gap. It is expressed as a percentage of <a href="https://v2.webnotes.in/basic-pay-government-employees" rel="nofollow">basic pay</a> and is added on top of it, so a rise in the DA percentage lifts the salary of every employee in proportion to their basic pay.</p>