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Which Allowance Comes Under Dearness Allowance?

Sarah Jenkins • • 6 min read
Which Allowance Comes Under Dearness Allowance?

Types of Dearness Allowance
For calculation, DA is divided into two separate categories: Industrial Dearness Allowance and Variable Dearness Allowance. Industrial Dearness Allowance (IDA) applies to the Public sector employees of Central Government.

What is included in dearness allowance?

Three components make up VAD. First is the consumer price index, second, the base index, and third is the variable DA amount fixed by the government of India. The third component remains fixed until the government revises the minimum wages. Same way, the base index also remains fixed for a particular period.

What is dearness allowance with example?

The formulae for calculating dearness allowance are as under: For central government employees: DA% = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76)100 For central public sector employees: DA% = ((Average of AICPI (Base Year 2001=100) for the past 3 months -126.33)/126.33)100 Here, ...

Sarah Jenkins
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Sarah Jenkins

Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.