New Delhi, Feb 5,2023:  The government is likely to raise the dearness allowance (DA) for employees and pensioners by 4 per cent, according to reports.

The DA hike will be effective from January 1, 2023, however it needs to be cleared by the Union Cabinet first.

If hiked, this would take the DA to 42 per cent from the existing 38 per cent.

DA, paid to employees as an insulation from inflation, is revised periodically twice a year on a half-yearly basis, and it is calculated as a percentage of the basic salary of employees.