Confused About DA Calculation? Why Some Employees Gain While Others Don't

Sir, please tell me how to calculate DA (if new DA is added). Some employees are gaining DA while some are not.

Thanks and regards.

Dear all,

DA stands for Daily Allowance. If I am not wrong, the policy varies from company to company, and the designation is also considered while calculating DA. As per my knowledge:
- Directors' DA = Rs. 3000 per day outstation (within the country)
- Senior Manager = Rs. 2500 per day outstation (within the country)
- Manager DA = Rs. 2000 per day outstation (within the country)

Please note that it excludes boarding and lodging charges.

Thank you.

DA stands for Dearness Allowance. The rate of DA depends on the policy of the respective organization. It is expected to reflect the cost of living index of the place of working. It is usually calculated as a percentage of the basic salary.

A variant of this is Variable DA or Industrial DA, which is also based on the Consumer Price Index. Normally, VDA is an essential part of minimum wages fixed by the government.

Regards,
Madhu.T.K

DA stands for Daily Allowance and Dearness Allowance. Daily allowance is granted to meet the expenditures that are incurred when the employee serves in a place other than their headquarters. Dearness Allowance is an allowance granted to compensate for the shortfall in the pay structure. Generally, both should be calculated based on the basic pay and the location where the employee is assigned to work. There may be another method as well, which involves a fixed DA for basic pay depending on the location where the employee is relocated. For instance, when moving to metropolitan cities, state headquarters, district headquarters, hill stations, villages, or in the IT field in foreign countries, the daily allowance may vary.

In the case of Dearness Allowance, the above policy is not followed. It is a fixed percentage regardless of the place of work.

- Sengailingam