Payroll
Dearness Allowance Full Form: DA
Dearness Allowance (DA) is a pay component designed to help offset changes in the cost of living.
In simple terms
Its applicability and calculation vary by employer, sector and employment terms. Where it applies, it should be shown clearly in the salary structure and payroll records.
Example
An employee's payslip lists basic pay and a separate DA component.
Frequently asked questions
Is DA part of salary?
It can be a component of salary where an employer provides it.
How is DA calculated?
The method depends on the applicable policy or employment terms.