As a salaried worker, I have a fair knowledge of the dearness allowance that is included in my pay. A basic set income and a few extras make up your pay. Your take-home payment is calculated as the sum of your base salary and incentives. So let me tell you more about how to calculate dearness allowance in salary for private companies.
Consult experts at NoBroker to get answers to all your property-related queries. Get a home loan from NoBroker and start building your dream project.How to calculate DA?
The Central Government modified the method for calculating the dearness allowance after 2006. The computation for central government personnel, people working in the public sector, and retirees is as follows.
How to calculate DA for the central government employees?
Dearness Allowance% = ((Average of AICPI (Base Year 2001=100) for the previous 12 months -115.76)/115.76)*100.
How to calculate DA for the private sector employees?
Dearness Allowance% = ((Average of AICPI (Base Year 2001=100) for the previous three months -126.33)/126.33)*100.
This is the dearness allowance calculation formula.
What is dearness allowance in private sector?
All private sector workers are paid a base pay as well as a preset percentage of that base income as a dearness allowance to cover rising living expenses. This DA is included in the take-home payment together with a number of other allowances. DA or dearness allowance is a significant component of the monthly wage.
Now you know how to calculate dearness allowance.
Read More: What is dearness allowance? Is dearness allowance taxable? What is dearness allowance in gratuity?Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Well, dearness allowance is a cost of living adjustment that the govt. pays to pensioners as well as public sector employees. It is calculated as a %age of basic salary to deal with inflation’s effect. Let me tell you how to calculate DA for private companies and government companies.
How to Calculate Dearness Allowance in Salary for Private CompaniesI want you to know that the private sector employees are not entitled to receive the dearness allowance in their salary.
How to Calculate Dearness Allowance for Government Employees Public Sector EmployeesDearness Allowance % = [( Average of AICPI ( Base Year 2001 = 100) for the last three months – 126.330)/126.330]x100
Note: The full form of AICPI is All-India Consumer Price Index.
Central Government EmployeesDearness Allowance % = [( Average of AICPI ( Base Year 2001 = 100) for the last twelve months – 115.760)/115.760]x100
PensionersThe pension for retired public-sector employees is revised when a pay commission introduces a new salary structure. When dearness allowance increases, the corresponding surge is reflected in the pension of retired public sector employees. This applies to both regular and family pension.
Learn What is Dearness Allowance, Travel Allowance, and House Rent Allowance in SalaryI hope I cleared all your doubts on how to calculate DA.
How to calculate dearness allowance?
Eeshan
255 Views
2
3 Year
2021-10-28T17:54:03+00:00 2021-10-28T18:39:02+00:00Comment
Share