How to Use

1. Enter your basic salary in the “Basic Salary” field.
2. Enter the current DA rate (in percentage) in the “DA Rate” field.
3. Click “Calculate DA” to get your Dearness Allowance.

What is DA?

Dearness Allowance (DA) is a cost-of-living adjustment allowance paid to employees to mitigate the impact of inflation on their salaries. It is calculated as a percentage of the basic salary and is revised periodically by the government or organizations based on inflation rates.

The formula for DA is:
DA = (Basic Salary × DA Rate) / 100

Extra Information

• Purpose: DA helps employees maintain their purchasing power in the face of rising prices.
• Frequency: DA is usually revised twice a year (January and July) in many countries.
• Taxability: DA is fully taxable under most tax regimes.
• Importance: DA is a significant component of the salary structure for government and private sector employees.