Understanding Dearness Allowance: Is It Part of Basic Salary and Affects PF Calculation?

harisaha07

Hi,

What is DA? I want to know whether DA is part of the basic salary or not. Also, when we calculate PF for the basic salary, may I include the DA to the basic salary or not?

Please send your replies quickly.

scooby do

Yes, PF is calculated as DA + Basic. There is a lot of information posted on this site regarding this topic. Please try the download search or Google search. You will find all the information you need. It is easier to look for the information already posted so that you do not waste time waiting for a reply.

Regards,
Kavitha

raajz_johnny

Dear Harisaha,

Greetings!

Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a percentage of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas, etc.

PF is deducted at 12% of Basic+DA/Basic only if DA is not included.

Thank you.

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