Dearness Allowance

What is Dearness Allowance for a government employee and how it is calculated.

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This allowance is given to government employees to reduce the effect of inflation on day-to-day expenses.

Generally, Central Government announces to give DA to its employees twice a year. Once in January and once in July.

Calculation of DA

Calculation of DA on the salary of an employee = Basic Pay x DA rate (in percent) received by the employee

Pay Matrix and DA

Since Dearness Allowance is calculated on the basis of Basic Pay, it varies according to the Pay Level and Cell of the Pay Matrix.

Merger of DA

Generally, when the rate of Dearness Allowance crosses 50%, it is merged with Basic Pay.

DA to retired employees

Dearness Allowance is also given on the pension received by retired government employees, which is called Dearness Relief.

Current DA rate

The current rate of Dearness Allowance is 34% and this is effective from 01 January 2022. 

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