How to Calculate Your Dearness Allowance Introduction Dearness Allowance (DA) is a crucial component of a government employee’s salary in India. It is a cost-of-living adjustment allowance aimed at mitigating the effects of inflation. With frequent revisions based on the Consumer Price Index (CPI), it’s important to understand how DA is calculated. In this blog, we’ll explain what DA is, how it is calculated, and how you can use a DA calculator to determine your revised salary. What is Dearness Allowance (DA)? DA is a compensatory allowance given to government employees, public sector workers, and pensioners to offset inflationary pressures. It is revised twice a year , usually in January and July, based on changes in the CPI. Types of DA Industrial Dearness Allowance (IDA) – For public sector employees. Variable Dearness Allowance (VDA) – For central government employees, updated periodically. How is DA Calculated? The DA calculation formula varies dependin...
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