Central Government employees draw their salary as a structured composition of basic pay, dearness allowance, house rent allowance, transport allowance, and several special-purpose allowances. Each component is governed by its own Office Memorandum and is revised on its own cycle. This section covers each allowance with the current rate, the rule that governs it, and worked examples.
Current rates (as of April 2026)
| Allowance | Current Rate | Effective From |
|---|---|---|
| Dearness Allowance (DA) | 60% of basic pay | 1 January 2026 |
| HRA — X cities (50L+ pop) | 30% of basic pay | DA crossed 50% trigger |
| HRA — Y cities | 20% of basic pay | DA crossed 50% trigger |
| HRA — Z cities | 10% of basic pay | DA crossed 50% trigger |
| Composite Transfer Grant (CTG) | 80% of last basic pay | Per 7th CPC |
The DA at 60% was notified by Office Memorandum No.1/4(i)/2025-E.II(B) issued by the Department of Expenditure on 22 April 2026, with three months of arrears (January, February, March 2026) payable along with the April 2026 salary cycle.
Latest articles
Travelling Allowance (TA): Tour, Transfer, and Retirement Rules
Daily Allowance, mileage, mode of travel by Pay Matrix level, transfer TA, composite transfer grant, and TA on retirement explained with examples.
House Rent Allowance (HRA): Cities, Rates, Rules for Central Government Employees
X, Y, Z city classification with current 30%/20%/10% rates, the DA-threshold trigger, who can claim, who cannot, and how HRA interacts with rent receipts and self-occupied accommodation.
Dearness Allowance (DA): Complete Guide for Central Government Employees
How DA is calculated, when it is revised, the AICPI-IW formula, the latest 60% rate effective 1 January 2026, and what changes when DA crosses critical thresholds.
About this section
Each article cites the originating Office Memorandum so that you can verify the position from the Department of Expenditure source directly. We will update this hub when the next DA cycle (1 July 2026) is notified, and again when the 8th Pay Commission recommends revisions to the allowance structure.