DA is periodic increase in salaries / wages to compensate for increase in prices. As long these are above the prescribed minimum wages for each category of employee, do not bother about DA. It is declared by state government & central government. The process of calculation of DA based on process is complex. Normally 40 to 50%+ salary / wages should be basic salary and the rest can be as allowances. Please check applicability of minimum HRA act, as you have not mentioned state you operate from.
Lot of queries posted are without basic info viz. type of org (factory / establishment), manpower engaged, location. The applicability of statutes & their sections depends on these factors. Hence all are requested to incorporate these details in your query. In absence of these essentials some one may give wrong advice and cause difficulty to you.
Shrikant Prabhudesai
shrikant_pra@yahoo.com