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Dearness Allowance Calculator

Work out dearness allowance instantly with clear inputs, formula shown and shareable results.

About Dearness Allowance Calculator

Dearness allowance is a percentage of basic pay revised periodically in line with a consumer price index, and revisions are usually notified after the effective date, which generates arrears. Because DA also drives HRA, transport allowance and pension, a DA rise compounds through the whole pay packet.

Formulas

Dearness allowance

DA = Basic pay x DA rate %

Arrears

Arrears = (New DA - Old DA) x Months of arrears

Worked example

With the default values below, Dearness Allowance Calculator returns Monthly dearness allowance of $28,050.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Basic pay
56,100
Current dearness allowance rate
50
Previous dearness allowance rate
46
Months of arrears payable
3

Results

Monthly dearness allowance
$28,050.00
Increase from the previous rate
$2,244.00
Arrears payable
$6,732.00
Basic pay plus dearness allowance
$84,150.00

Step by step

  1. 1Values used
  2. 2Dearness allowance
  3. 3Arrears
  4. 4Monthly dearness allowance= 28,050.00
  5. 5Increase from the previous rate= 2,244.00
  6. 6Arrears payable= 6,732.00
  7. 7Basic pay plus dearness allowance= 84,150.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

How often is DA revised?

Typically twice a year, keyed to a moving average of the applicable consumer price index for industrial workers.

Is dearness allowance taxable?

Yes, DA is fully taxable as salary. It is also treated as pay for computing certain retirement benefits.

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