How are Central DA arrears calculated?

Monthly Gross DA Arrears = (Basic Pay * DA Difference %) + (Base Transport Allowance * DA Difference %). For NPS subscribers, 10% is deducted on the Basic DA arrears portion, and the balance is paid as Net Arrears.

Is NPS deducted from DA arrears?

Yes. Since Dearness Allowance forms part of the 'Emoluments' for pension purposes under NPS (Basic + DA), 10% of the additional DA paid on Basic Pay is credited to the employee's Tier-1 PRAN account, matched by a 14% Government contribution.

DA Hike & Arrears Calculator | Month-Wise Breakdown & Net Payable

DA Arrears Computation Matrix

Enter your pay details and retroactive period to calculate net payable arrears

Monthly Basic Pay (₹)

Base Transport Allowance (₹)

Pre-Revision DA Rate (%)

Revised DA Rate (%)

Arrears Effective From Month

Arrears Ending Month

Include DA on Transport Allowance (DA on TA) Deduct 10% NPS on Basic DA Arrears

Summary of Computed Arrears

Official 3% Hike

Total Net Payable Arrears ₹0 Credited to bank account after 10% NPS deduction

Total Gross Arrears ₹0

Month-Wise Arrears Breakdown Schedule

Month	Basic DA (3%)	TA DA (3%)	Gross Arrears	NPS (10%)	Net Payable

Recent DA Hike Decisions

July 1, 2024: 53% (+3%) Notified Oct 16, 2024 (Paid with 3 months arrears)
January 1, 2024: 50% (+4%) Triggered automatic HRA increase to 30%/20%/10%
July 1, 2023: 46% (+4%) Notified Oct 2023

Related Calculators

7th CPC Salary Calculator HRA & Tax Exemption Section 89(1) Tax Relief

Understanding Central Government DA Arrears Calculation & Disbursal

Dearness Allowance (DA) is announced with retroactive effect twice a year by the Union Cabinet. Because cabinet approval usually takes place in October (for July revisions) and March (for January revisions), employees receive back-pay known as DA Arrears for the intervening months.

The Exact Mathematical Formula

Monthly Gross DA Arrears = (Basic Pay × DA Hike %) + (Base TA × DA Hike %)

Net Arrears Paid = Gross DA Arrears - (Basic DA Arrears × 10% NPS Deduction)

Frequently Asked Questions (DA Arrears FAQs)

Q1: Are pensioners entitled to DA Arrears?

Yes. Central Government pensioners receive Dearness Relief (DR) arrears for the same retroactive period. However, unlike serving employees, pensioners do not have any NPS deductions or Transport Allowance arrears.

Q2: How are DA arrears taxed?

DA arrears are taxable in the financial year in which they are received. However, if the arrears result in a higher tax bracket, employees can claim tax relief under Section 89(1) of the Income Tax Act by filing Form 10E online.

Q3: Why is DA on TA included in arrears?

Under Department of Expenditure orders, the Transport Allowance (TA) is continuously indexed to the current DA rate. Therefore, whenever a retrospective DA hike is notified, the corresponding DA component on TA must also be calculated and paid as arrears.