Central government employees may soon get a good news regarding the much-awaited hike in dearness allowance, which will eventually lead to an increase in their salaries. The update on 4 per cent hike in DA is expected anytime soon since the increase in allowance is revised twice a year -- January and July. 

DA is revised on the parameters of All India Consumer Price Index (AICPI). Currently, as AICPI is prevailing high above the Reserve Bank of India's tolerance level, the possibility of government employees getting aa hike in DA is also high. The retail inflation in June stood at 7.01 per cent, which is above the RBI's target level of 2-6 per cent.

The DA of the employees is likely to be hiked by 4 per cent, according to the latest media reports. If this happens, then the DA of government employees would reach 38 per cent.

In March, the Union Cabinet had approved to increase 3 per cent in dearness allowance (DA) under the 7th Pay Commission, thus taking the DA to 34 per cent of the basic income. Over 50 lakh government employees and 65 lakh pensioners are getting profit from this move. 7th Pay Commission: Big Announcements on DA Hike and DA Arrears Expected This July, Check Details Here

As per latest media reports, Central government may soon also address the issue of DA arrears and government employees may also receive Rs 2 lakh in pending arrears in one go. The amount of DA arrears is decided by the employees' pay band and structure. 7th Pay Commission: 6% DA Hike Confirmed in July? Check Latest Update on Dearness Allowance

The central government had revised the formula to calculate the DA and DR for central government employees and pensioners in 2006. As per the formula. DA is calculated as:

Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.

For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.

(The above story first appeared on LatestLY on Jul 25, 2022 04:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).