Union government is likely to increase the dearness allowance (DA) for its over one crore employees and pensioners by four percentage points to 42% from the existing 38% as per the agreed formula for the purpose. The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The Labour Bureau is a wing of the Labour Ministry.