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
DA is paid by the government to help employees cope with stubbornly rising prices which is due to high inflation
Dearness Allowance is calculated as a percentage of the basic salary of government employees
DA calculation is very simple. The current rate of Dearness allowance multiply with your basic salary is Dearness allowance
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
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
DA and DR usually get hiked twiced a year-in January and July