Dearness Allowance (DA) is a cash allowance paid to government employees and pensioners in India to compensate for the rise in the cost of living. It is usually a percentage of the employee’s salary. This system is followed not only in India but also in other countries like Bangladesh and Pakistan.

Dearness allowance is a cost of living adjustment allowance which is paid by the government to the employees of the government sector and the pension holders of the government sectors. Calculation of Dearness Allowance To calculate dearness allowance, there are some formulas.

Special allowance was not linked to the consumer price index and not in the nature of dearness allowance and hence did not fall within the definition of basic wage. RPFC went on appeal Surya Roshni Ltd. vs. Employees Provident Fund and others Madhya Pradesh High Court Whether Transport allowance, HRA, Attendance incentive, Special