New Delhi, July 6 -- Dearness allowance (DA) is a component of basic salary tied to inflation. It impacts the monthly pay of central government employees, public sector staff, defence personnel, bank employees and retired pensioners aimed at mitigating rising inflation.

DA is revised twice annually based on the All-India Consumer Price Index (AICPI) formula as prescribed under the 7th central pay commission. Annually, the announcements are mostly made in March and October, with rollouts scheduled in January and July.

The Centre last hiked DA by 2% in April this year, effectively taking the component to 60% of the basic pay for central government employees and pensioners. Notably, DA is only offered to public sector employees and is not ...