DA stands for Daily Allowance and Dearness Allowance Daily allowance is granted to meet the expenditure which are met when the employee happens to serve in place other than his head quarters Dearness Allowance is an allowance granted to compensate the short fall in pay structure. Generally both should be calculated based on the basic pay and the station where the employee happen to move. There may also be another way. That is fixed DA for basic pay depending upon the station where the employee happen to move. Example when moving around metropolitan cities, State Headquarters, District Headquarters, Hill sttaions, Villages, and in IT field at foreign countries, the Daily allowance may vary. In the case of Dearness Allowance the above policy is not followed. It is a fixed percentage irrespective of the place of work. sengailingam