akankshakukhraniya Started The Discussion:
Hi Friend’s, any body can tell me hoe to calculate Dearness Allowance. Is there any fix % of Salary. or it varies from city to city. Thanks, Akanksha
Hi, Dearness Allownce is fixed for metro 40% of basic & for other city it is different . Regards, Nilesh
hi, according to me DA is given at 75% for metros and 50% within the state,thst what my company is following and the employees are entitled for DA according to their grades.

You must understand the basic concept of dearness allowance. It is a payment towards the rise in cost of living, which is calulated based on cost of living index.

As regards the minimum wages, the State government or the central Government makes a notification and payment is to be made.. With regard to payment at a higher level, the coimpany can formulate its own scheme for payment of dearness allowancxe. It can be a fixed percentage of the basic pay, or on a sliding percentage, as per company's schem and policy.

Please remember, once the company is paying more than the minimum wages, it can formulate its own scheme for payment of dearness allowance. Needless to say that all other factors like, region cum industry, capacity to pay etc are taken in to consideration by the company .


There is a differeence of goverment and public sector undertaking paying DA and private or limited company paying Da.

DA(DEARNESS ALLOWANCE ) is the aloowance paid to employees due to rise in Market price .

Generally DA is calculated as rise in consumer price index .And DA is connected with basic generally it is the %of basic pay.


THEN RISE 1000/2460*100 = 40.65%

Then DA will be 40.65% of Basic.

Hello and Hi dear all fellow comrades..

I would like to request on everyones esteem part that..just please assist me in knowing the standard calculation on Basic and DA ... irrespective of any wage bill.

Take Care..

Basic Pay Is Fixed According The Industry And Catogery, Dearness Allowance Is Actualy Variable But It Revised Once In A F Year. It Giving For Empee To Living And Managing The Forthcoming Year Budget.

working in profit making company how to calculate 50% IDA merger into Basic pay & what are the benefits out of this merger.
hi, still DA is not very clear to me.if possible please give me some good example. But know private organizations are not making a compontent of salary. Thanks! gurpreet
Dear Friends,

We have workers on rolls working for more than 12 years in our machine shop. They are presently demanding DA to be given. At present we are paying Basic HRA CCA Conv.Allowance etc., which does not show DA as specific component. Can anybody guide me immediately should I agree to the team that DA will be included in their salary component and if YES what are the consequences on the CTC and if do not want to give DA what reply to be given.

Your immediate query will help to sort out the matter immediately.




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