DA Arrears Calculator

Dearness Allowance (DA) arrears arise because the Government of India revises DA rates twice a year — effective 1 January and 1 July — but the official Office Memorandum (OM) announcing the new rate is typically issued 2–3 months later. The additional DA payable from the effective date until the OM is issued is released in a single tranche called "DA arrears." Every Central Government employee and pensioner is entitled to these arrears once the OM is published.

How to Calculate DA Arrears Step by Step

The formula is straightforward: Arrears = Basic Pay × (New DA% − Old DA%) ÷ 100 × Number of months. For example, if your basic pay is ₹56,100 (Level 6, Cell 2 in the 7th CPC pay matrix) and DA rises from 58% to 60% effective 1 January 2026, with the OM released in March 2026, you receive arrears for 3 months: ₹56,100 × 2% × 3 = ₹3,366. Use the calculator above to verify your exact DA arrears amount for any revision.

Are DA Arrears Taxable? Section 89(1) Relief & Form 10E

Yes — DA arrears are fully taxable as salary income in the year of receipt. They are added to your gross salary for that financial year, which can push you into a higher tax slab if the amount is large. However, the Income Tax Act provides relief under Section 89(1): you can spread the arrear amount across the years to which it relates and pay tax as if it had been received then, at lower rates. To claim this relief, you must file Form 10E on the Income Tax portal before filing your ITR. Use our income tax calculator to estimate whether the arrears tip you into a higher slab.

DA Arrears for Pensioners

Pensioners receive Dearness Relief (DR) instead of DA, but the mechanism is identical — the DR% matches the DA% and is revised on the same schedule. Pensioners drawing pension from the Pay & Accounts Office (PAO) or via CPPC-linked banks receive arrears automatically. If you recently retired and are tracking your pension entitlements, the commuted pension calculator and gratuity calculator can help you plan your retirement corpus.

DA Revision Schedule & 8th CPC Impact

DA has risen from 46% (July 2023) to 60% (January 2026), adding significant monthly earnings over this period. Under the upcoming 8th Pay Commission, DA is projected to reset to 0% when new basic pay is announced — the accumulated DA will be merged into the revised basic. This is the same mechanism that was used in the 7th CPC transition. Track the latest current DA rate and revision history to stay updated.