India, March 16 -- The central government employees who are eagerly waiting for the announcement of a hike in their Dearness Allowance (DA) might hear it soon.

According to reports, a final decision with regards to the DA hike is expected to be taken during the upcoming Cabinet meeting led by Prime Minister Narendra Modi. The Cabinet meetings are typically held on Wednesdays.

The government is reportedly going to announce a 2% DA hike, taking the allowance from 53% to 55%.

Dearness allowance is announced bi-annually to help central government employees cope with rising inflation. It is a part of the employees' take-home salary and is calculated as a portion of their basic pay.

For example, for a base pay of Rs.1 lakh, the DA would be ...