How is DA calculated for central govt employees?

How is Dearness Allowance (DA) calculated? The DA is revised two times a year between January and July. The Dearness Allowance is calculated by multiplying the current rate of dearness allowance by the base wage.

How DA is calculated in salary with example?

For example: Suppose an employee was getting Rs 100 as basic pay. The DA amount at 17 per cent rate for him was Rs 17. Now, the total DA he will get will be 28 per cent of Rs 100 i.e. Rs 28. The minimum basic pay recommended for Central Government Employees at the entry-level by the 7th Pay Commission is Rs 18,000.

How DA is calculated for salary in central govt employees?

Earlier in July this year, the Central Government had hiked DA and DR for both government employees and pensioners by11 percentage points to 28\% of basic pay/pension. Now, the DA of Central Government Employees will be calculated at the rate of 31\% of Basic pay.

What is the current DA rate for central govt employees?

“….the Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 28 per cent to 31 per cent of the basic pay with effect from July 1, 2021,” said the office memorandum dated October 25.

What is the difference between dearness allowance and dearness relief?

Dearness Allowance (DA) is the cost of living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same. Dearness Relief (DR) is the same as allowance and is given to central government pensioners.

Is dearness allowance and HRA same?

Dearness Allowance must not be confused with the HRA as they are two separate components and are treated differently for income tax. One significant difference is that HRA applies to both private and public sector employees, while only public sector employees are entitled to DA.

Does HRA come under DA?

House Rent Allowance is paid by the employer to the employee as part of their salary. To calculate House Rent Allowance (HRA) one has to consider Basic Salary, Dearness Allowance(DA) and Commission that is if paid as percentage of turnover.