Dearness Allowance


The full form of DA is Dearness Allowance. It is an amount that an organisation pays to its employee for different purposes. Basically, it is the amount of money which is allocated to employees and pensioners of a public sector as well as the government organisation. It is the cost of living allowance which allows employees to spend on their daily basic expenditures. A percentage of an employee’s salary is reserved as DA. This allowance may vary from city to city. In Tier 1 cities such as Mumbai DA is high, where in Tier 3 cities such as Bikaner may have lower DA. It all depends on the cost of living in a city.