How dearness allowance works
DA protects pay against inflation. The government revises it twice a year, from 1 January and 1 July, using the All-India Consumer Price Index for Industrial Workers (CPI-IW). Decisions usually come two to four months late, so each hike is paid with arrears. Pensioners get the same rate as Dearness Relief.
DA after the 8th Pay Commission
On the day the 8th CPC matrix starts, the DA you were getting is built into the new basic pay through the fitment factor and DA drops to 0%. Because the new basic pay is larger, each later DA point is worth more rupees, and HRA also resets to its lowest slab. See the full effect on take-home pay with the 8th Pay Commission salary calculator.