What is DA for salary employees

What is DA for salary employees||How it is calculated ?

Today we will discuss about DA(Dearness Allowance).what is DA for salary employees and How it is calculated ?. Dear friends If you want to know more details DA Please read our full article.

Full form of DA is Dearness Allowance, is a cost of living adjustment the government pays the public sector pensioners and employees. For salaried Central government employees and state government employees, it’s included as a percentage of their salary. It is a calculated percentage of their basic salary meant to curb the effects of inflation and maintain their living standards.

DA dearness allowance

Dearness Allowance is an additional component of the salary provided to public sector employees and pensioners by the state government and Central Government.

DA is drawn to assist them in managing the escalating cost of living resulting from inflation by providing an amount above and beyond their basic salary. Usually, it is a fixed percentage of the basic salary that is regularly adjusted in accordance with prevailing conditions. The sum of DA offered varies from one employee to another based on their location.

Types of Dearness Allowance

The Indian government and State Govt offers the following types of dearness allowance to its employees:

  • Industrial dearness allowance
  • Variable dearness allowance

How to Calculate Dearness Allowance?

DA is calculated keeping in mind the All India Consumer Price Index (AICPI), with the base year taken as 2016. It is set up on the basic salary given to the employee, and is declared twice a year.Once in January and again in July.

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