DA Calculation Formula:
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Dearness Allowance (DA) is a cost of living adjustment allowance paid to government employees and pensioners in India. Under the 7th Pay Commission, DA is calculated as a percentage of basic pay to offset inflation.
The calculator uses the following formula:
Where:
Example: For a basic pay of ₹50,000 with 4% DA rate, DA = ₹50,000 × 4/100 = ₹2,000
Details: As of 2025, the expected DA rate is 46-50% of basic pay, with periodic revisions every six months (January and July).
Tips: Enter your basic pay in INR and the current DA rate percentage. The calculator will show your DA amount and total salary (basic pay + DA).
Q1: How often is DA revised?
A: DA is revised every six months - in January and July, based on the Consumer Price Index (CPI) data.
Q2: Is DA taxable?
A: Yes, DA is fully taxable under the Income Tax Act.
Q3: What was the last DA hike?
A: The last hike was 4% in January 2025, bringing DA to 46% of basic pay.
Q4: When will the next DA hike be announced?
A: The next hike is expected in July 2025, likely another 3-4%.
Q5: Does DA calculation differ for pensioners?
A: No, the same formula applies to pensioners using their basic pension amount.