The hike in DA was the proposed to provide some relief to the employees amid the soaring Inflation rates. The revision of DA from 27 per cent to 35 per cent of basic salaries is based on the consumer price index (CPI) for industrial workers.
CPI has been showing a steep increase along with other indices of the price rise. CPI for industrial workers surged to 16.2 per cent in Jan 2010 as against 10.4 per cent recorded in Jan 2009.
The employees will be paid the amount starting from Jan 2010.