DA Hits 63%: How Much Extra You Pocket Now?

Gujarat and Uttarakhand raised Dearness Allowance to 63% for state government employees and pensioners from July 1, 2026. If you work for these state governments, your monthly take-home just went up — and your HRA and gratuity calculations shift too.

Here's what happened: Gujarat and Uttarakhand raised Dearness Allowance from 59% to 63% of basic pay for state government employees and pensioners, effective July 1, 2026.. The move follows the central government's own DA revision, with both states aligning their allowance structure to the Centre's latest order.. Eligible employees will receive arrears for the period between the effective date and actual salary credit — typically paid as a lump sum in the next payroll cycle..

What you should do: Check your August payslip for the revised DA figure and any arrears credit — if only one month's hike appears, follow up with your HR or accounts department immediately.. Recalculate your HRA exemption for FY2026-27 using the updated basic + DA base, especially if you file ITR under the old tax regime — the exempt amount may be higher now.. If you are within 1–2 years of retirement, ask your HR to recompute your projected gratuity using the new DA figure — the difference can be meaningful at higher basic pay levels..

Arrears received in a lump sum are fully taxable in the year of receipt — but you can claim relief under Section 89(1) of the Income Tax Act to avoid being pushed into a higher slab.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.