InvestorQ : Is Dearness Allowance a fixed amount?
divya Sing made post

Is Dearness Allowance a fixed amount?

simran Kaur answered.
3 years ago

No. Dearness Allowance (DA) is not a fixed amount that’s paid to state/central employees.

It is a cost of living allowance that is aimed at hedging the ever-increasing inflation. Because DA is directly related to the cost of living, its value varies for different employees based on their location of employment.

Thus, DA can’t be the same for two people working in different cities. Hence, DA is different for employees in the urban sector, semi-urban sector or the rural sector.