New Delhi, June 9 -- Dearness Allowance aims to help mitigate cost-of-living expenses for central government employees, public sector staff, defence personnel, bank employees, and pensioners. A component of the basic salary, it is revised bi-annually by the All-India Consumer Price Index (AICPI) with new announcements in March and October followed by rollouts in January and July.

This year, the Union Ministry of Finance revised DA and dearness relief (DR) by 2% with effect from 1 January this year, effectively takes the component to 60% of Basic Pay up from previous 58%.

One of the most closely watched components of government employees' salaries and pensions, especially whenever pay hikes or inflation adjustments are discussed. Around ...