How to calculate basic DA from salary?

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One of my friends works as a marketing executive. His company provides him a dearness allowance. Still, he doesn't know how to calculate basic DA from salary, so can anyone give guidance about how to calculate DA from salary?

Compensation Management Dearness Allowance

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Asked 3 years ago

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Bansi Answered 3 years ago

Dearness Allowance is a payment towards the rise in cost of living, which is calculated based on the cost of living index.


DA(Dearness Allowance) is the allowance paid to employees due to rise in Market price . Generally. DA is calculated  an increase in consumer price index (CPI). And DA is connected with necessary generally, it is the % of basic pay.


SUPPOSE WE TAKE A BASE CPI AS 4460

CURRENT CPI IS 5460 THEN RISE =1000 THEN RISE 1000/4460*100 = 22.42%

Then DA will be 22.42 % of Basic.

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