In every salary structure, different allowances are provided to support employees in meeting their financial needs. Among these, Dearness Allowance ( DA ) holds special importance, especially for government and public sector (PSU) employees. The DA full form is Dearness Allowance, and it is a cost-of-living adjustment paid to employees to reduce the impact of inflation on their earnings. Simply put, what is DA in salary ? It is an allowance calculated as a percentage of the basic pay, with the ... Dearness Allowance ( DA ) is an allowance provided to current and retired employees of the Central Government to offset the impact of inflation. It is usually a percentage of the employee’s salary . DA varies according to where the employee resides. Employees in urban areas might get more DA than those living in semi-urban or rural areas. Dearness Allowance ( DA ) is a cost of living adjustment paid to employees—primarily government employees and pensioners—to offset the impact of inflation. It is calculated as a percentage of basic salary . Dearness Allowance ( DA ) is a salary component paid to employees of public sector undertakings to offset the impact of inflation and rising living costs. Calculated as a percentage of the basic salary , DA is revised twice a year based on the Consumer Price Index (CPI).