What is Dearness Allowance? How is DA calculated

Published By Aman Gupta | 21 Oct, 2022

Dearness Allowance is the cost-of-living adjustment allowance which the government pays to the employees of the public sector as well as the pensioners
Credit : unsplash

DA is paid by the government to help employees cope with stubbornly rising prices which is due to high inflation
Credit : unsplash

Dearness Allowance is calculated as a percentage of the basic salary of government employees
Credit : unsplash

DA calculation is very simple. The current rate of Dearness allowance multiply with your basic salary is Dearness allowance
Credit : unsplash

For central government employees: The DA is calculated as -- {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100
Credit : unsplash

The Central government on 28 September approved 4 per cent additional instalment of Dearness Allowance and Dearness Relief to central government employees and pensioners with effect from 1 July
Credit : unsplash
The move will benefit about 41.85 lakh central government employees and 69.76 lakh pensioners
Credit : unsplash

DA and DR usually get hiked twiced a year-in January and July
Credit : unsplash