DA hike, June 27 -- The All India Defence Employees' Federation (AIDEF) has in a second memorandum submitted to the 8th pay commission panel sought a change in how dearness allowance is calculated.

At present, as per recommendations made by the 7th CPC, DA and dearness relief (DR) are calculated using the All-India Consumer Price Index for Industrial Workers (AICPI-IW) 12-month average.

According to the AIDEF, the formula does not adequately reflect actual cost of living when it comes to mitigating inflation pressure on households of central government employees and retired pensioners.

Notably, DA is adjusted twice a year for inflation based on the AICPI's 12-month average using the following formulas:

Here, the AIDEF has argued that ...