The Union Cabinet has approved a 2% increase in Dearness Allowance (DA) for government employees and pensioners, according to sources following the Cabinet meeting.
The Dearness Allowance is linked to inflation and is revised twice a year, usually in January and July. It is calculated using the Consumer Price Index for Industrial Workers (CPI-IW), which is released every month by the Labour Bureau under the Labour Ministry.
This time, however, there was a delay in the announcement. The Confederation of Central Government Employees and Workers (CCGEW) expressed concern, noting that normally the hike is announced in late September and arrears are paid in early October.
