Can anyone help me in knowing what is dearness allowance? And what is the difference between H.R.A and D.A.? We are only mentioning about Basic salary, H.R.A, City compensation allowance in our salary structure. Now we also want to include D.A., so can anyone help me? It would be great if anyone could tell me what necessary things should be mentioned in Salary slips.
Thanks and Regards, Pragati
From India, Mumbai
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2Thanks and Regards, Pragati
From India, Mumbai
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Hello Pragati,
Dearness Allowance Means: In India, Dearness Allowance (D.A.) is part of a person's salary. D.A. is calculated as a percentage of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas, etc. Pensioners and family pensioners are granted D.A. to offset the price rise. During reemployment under the Central or State Government, Government undertaking, Autonomous body, or Local Body, they are not eligible to draw D.A., in which case D.A. is allowed in addition to fixed pay or time scale. In other cases of reemployment, D.A. is allowed subject to the limit of emoluments last drawn. D.A. is not allowed while the pensioner stays abroad and also in the case of employees absorbed in public undertaking or bodies. If the pensioner stayed abroad without reemployment, he shall be eligible to draw D.A. on pension.
Rates of Dearness Allowance: Prior to 1972, there was no element of D.A. on pensions. From 01.04.1972, there was a flat rate of D.A. for all pensioners:
- 01.04.1972 - Rs.5
- 01.04.1973 - Rs.10
- 01.10.1973 - Rs.15
- 01.04.1974 - Rs.20
- 01.02.1975 - Rs.28
- 01.02.1976 - Rs.32
- 01.04.1977 - 10%, subject to a maximum of Rs.15
- 15.09.1977 - Rs.10 for those retired prior to 01.06.1961, Rs.5 after 01.06.1961
- 01.04.1978 - 5% increase, minimum Rs.10, maximum Rs.25
From 01.04.1979 to 30.09.1984, there were 28 installments of D.A. paid to the pensioners at certain fixed rates for 13 slabs of pension amounts. From 01.10.1984 to date, the pensioners are paid D.A. at a certain percentage of the basic pension. Dearness Allowance is calculated on the original pension without commutation. Dearness Allowance is granted at a certain percentage of the basic pension and is revised every 6 months from 01.07.1986 onwards based on the cost of living index.
Regards,
R D
From India, Mumbai
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Dearness Allowance Means: In India, Dearness Allowance (D.A.) is part of a person's salary. D.A. is calculated as a percentage of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas, etc. Pensioners and family pensioners are granted D.A. to offset the price rise. During reemployment under the Central or State Government, Government undertaking, Autonomous body, or Local Body, they are not eligible to draw D.A., in which case D.A. is allowed in addition to fixed pay or time scale. In other cases of reemployment, D.A. is allowed subject to the limit of emoluments last drawn. D.A. is not allowed while the pensioner stays abroad and also in the case of employees absorbed in public undertaking or bodies. If the pensioner stayed abroad without reemployment, he shall be eligible to draw D.A. on pension.
Rates of Dearness Allowance: Prior to 1972, there was no element of D.A. on pensions. From 01.04.1972, there was a flat rate of D.A. for all pensioners:
- 01.04.1972 - Rs.5
- 01.04.1973 - Rs.10
- 01.10.1973 - Rs.15
- 01.04.1974 - Rs.20
- 01.02.1975 - Rs.28
- 01.02.1976 - Rs.32
- 01.04.1977 - 10%, subject to a maximum of Rs.15
- 15.09.1977 - Rs.10 for those retired prior to 01.06.1961, Rs.5 after 01.06.1961
- 01.04.1978 - 5% increase, minimum Rs.10, maximum Rs.25
From 01.04.1979 to 30.09.1984, there were 28 installments of D.A. paid to the pensioners at certain fixed rates for 13 slabs of pension amounts. From 01.10.1984 to date, the pensioners are paid D.A. at a certain percentage of the basic pension. Dearness Allowance is calculated on the original pension without commutation. Dearness Allowance is granted at a certain percentage of the basic pension and is revised every 6 months from 01.07.1986 onwards based on the cost of living index.
Regards,
R D
From India, Mumbai
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Dear Sir,
My company is a private company. We had heads of salary in gross salary as follows: Basic 40% of Gross, HRA 50% of Basic, Medical 1250 fixed, Education 200 fixed, Conveyance 800 fixed, and the rest amount is shown in CCA. I believe this is the wrong method.
However, my HR Manager also does not have any knowledge about the same. I request you to guide me to introduce a new salary structure or add salary heads in my structure. I plan to add D.A., LTA, Home Rent, and Washing allowance.
Please guide.
WBR
From India, Ahmadabad
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My company is a private company. We had heads of salary in gross salary as follows: Basic 40% of Gross, HRA 50% of Basic, Medical 1250 fixed, Education 200 fixed, Conveyance 800 fixed, and the rest amount is shown in CCA. I believe this is the wrong method.
However, my HR Manager also does not have any knowledge about the same. I request you to guide me to introduce a new salary structure or add salary heads in my structure. I plan to add D.A., LTA, Home Rent, and Washing allowance.
Please guide.
WBR
From India, Ahmadabad
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