What is Dearness Allowance(DA)?

1. The Dearness Allowance (DA) is a cost of living adjustment allowance paid to Government employees, Public sector employees (PSU)and pensioners in India. Dearness Allowance is calculated as a percentage of an Individual's basic salary to mitigate the impact of inflation on people.
2. In simple words, it is an amount of money that is added to a person's basic pay because of rising prices and other costs. Whenever there is inflation in the country, DA will increase and whenever there is deflation, DA will decrease.

See Also: How Bank DA is calculated (Explanation)