The government has approved the 4% rise in Dearness Allowance (DA) rates. For those working for the central government and their pensions, this increases the total DA to 50% of their base pay. In addition, there has been a 25% rise on the canteen, deputation, and transportation allowances.

The move, which was made public by Commerce Minister Piyush Goyal, is anticipated to help 67.95 lakh pensioners and 49.18 lakh central government employees.

Salary levels will be affected by these adjustments since they will rise.

How is the DA determined?

The All-India Consumer Price Index (AICPI), which tracks changes in the cost of common goods over time, is used to compute DA.

Examine the AICPI; it provides information on pricing changes based on consumer spending on services and consumables. This number is provided by the Labour Ministry.

Select a certain period of time, such as the average pricing over the last three months for public sector employees or the last twelve months for government employees, depending on whether you work for the Central government or the Central public sector.

Use a formula to enter the AICPI and determine how much additional money you should receive.