DA (Dearness Allowance)
In simple words: Dearness Allowance is extra pay that helps employees cope with rising prices. When things get more expensive, DA helps salaries keep up.
Example: A factory worker’s basic pay is ₹15,000, and the company adds ₹3,000 as DA, so the monthly pay moves with the cost of living.
Why it matters: DA is most common in government jobs and some industries, and many private companies don’t use it at all. Under the new labour codes, basic and DA together form a major part of what counts as “wages”, so it can affect PF and gratuity too.
See also: Salary Calculator
Definitions are general guidance. Your organisation's policies and applicable local requirements determine how a term is used in practice.
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