DA or dearness allowance is allowance which government pays to its employees against the price rise in the economy to reduce the impact of inflation.
In India, government employees, public sector employees, and pensioners are entitled to DA as a cost of living adjustment allowance.
DA is different for employees in different sectors like the urban sector, semi-urban sector or the rural sector.
This allowance is applicable to both employees in India and Bangladesh. It is a fixed percentage of the basic salary aiming to hedge the impact of inflation.
DA to private sector employees is not mandatory by law. It solely depends on employers.
Dearness Allowance Calculations
DA (Dearness Allowance) = 2% to 4% of Basic Salary.
You can find these terms in your salary slips.
You can download ready to use Salary Slip Excel Template from the link below
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