What Is Dearness Allowance?

Dearness Allowance (DA) is an inflation-linked component of salary paid to Indian government employees, public sector workers, and pensioners. It is expressed as a percentage of basic pay and is revised every six months (January and July) based on the All-India Consumer Price Index for Industrial Workers (CPI-IW).

The Calculation

Monthly DA = Basic Pay × DA Rate ÷ 100. At the 50% rate effective January 2024, an employee with ₹45,000 basic pay receives ₹22,500 monthly DA — ₹2,70,000 annually. DA merges into basic pay when it crosses 50%, which then raises the base for future DA, HRA, and pension calculations.

DA Arrears

When the government announces a DA revision, the increase is often paid with arrears covering the months since the effective date. This calculator includes an arrears estimate so you can see the lump-sum you may receive with your next salary.