What is dearness allowance?
dearness allowance (Dearness Allowance,DA) is an allowance that is paid to employees and pensioners on top of their basic salary. This allowance value changes at regular intervals according to the change in inflation rate during life. Dearness Allowance is applied by the Government of India in the salaries of scheduled workers, government employees, pensioners, and central government employees. This allowance is determined by the government from time to time and is not a fixed allowance, but changes by a percentage based on the inflation rate. When inflation increases, dearness allowance also increases, due to which employees get the benefit of fair salary. The main objective of Dearness Allowance is to keep the earnings of employees and pensioners up to date with inflation rates to help them lead a disciplined life and balance the rising costs of living. Dearness Allowance is an essential salary allowance for government sector employees in India which helps in their financial stability.
