Dearness Allowance, June 20 -- DA is the component of the basic salary of central government employees, public sector staff, defence personnel, bank employees and pensioners that is periodically adjusted for inflation.

Revised twice annually by the All-India Consumer Price Index (AICPI), with new announcements usually made in March and October and rollouts scheduled in January and July, it is aimed at mitigating the rising cost of living and has an impact on employees' salaries.

DA is fully taxable and subject to income tax at the applicable slab rate. Notably, DA is available only to public-sector employees.

About 50 lakh central government employees and around 65 lakh retired central government pensioners, including defence personnel...