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DA hike and arrears calculator
DA hikes are usually announced months after the date they apply from, so the difference for the months in between is paid as arrears. Enter your basic pay or basic pension and the old and new rates.
Arrears run from the first month of the new rate up to the month before it is paid with salary. For an expected hike, the payment month is a guess: July hikes are usually paid with October salary.
Fill in the form to see the result.
How DA arrears are calculated
DA is a percentage of basic pay. When the rate goes up, your monthly DA rises by (new rate − old rate) × basic pay. Employees also get the same increase on the DA paid on transport allowance. Pensioners get Dearness Relief on their basic pension at the same rate.
The arrears are that monthly increase multiplied by the number of months from the effective date (1 January or 1 July) until the month before the new rate is first paid with salary or pension. For NPS subscribers, 10% of the DA part of the arrears goes to the NPS account, with the government's 14% added on top.
See the full DA rate history and how DA is calculated from the CPI-IW index.
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Frequently asked questions
When are DA arrears paid?
Usually with the salary of the month after the Cabinet approves the hike. A January hike is typically approved in March and paid with March or April salary; a July hike is usually approved in October before Diwali.
Is DA arrears taxable?
Yes, DA and its arrears are fully taxable as salary in the year you receive them. If arrears push you into a higher slab, relief under section 157 of the Income-tax Act, 2025 (section 89 of the old Act), claimed in Form 39 (formerly Form 10E), spreads them back over the years they relate to.
Do pensioners get DR arrears?
Yes. Dearness Relief rises by the same percentage points on the basic pension (and on any additional pension after 80), and the arrears are paid the same way.