The Union Cabinet is expected to take up a proposal to hike Dearness Allowance (DA) for central government employees and pensioners in its meeting today, sources told India Today. If cleared, the revised DA will come into effect from July 1, benefitting nearly one crore employees and retirees.

The hike is likely to be in line with the Consumer Price Index (CPI) for industrial workers, which serves as the benchmark for DA revisions.

DA is usually revised in January and July every year to help employees manage rising prices.