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The payment of the Dearness Allowance is not restricted to specific occupations.
How to calculate Dearness Allowance from the year 2006, twice a year using this average index?
Beginning 1 January 1996, the Dearness Allowance is granted to compensate for price increases to which the revised pay scales relate.
Indian citizens may receive a basic salary or pension that is then supplemented by a housing or a dearness allowance, or both.
Secondly, many states do not provide for dearness allowance, a safeguard against inflation and finally minimum wages are not linked to a cost of living index.
They are also eligible for Dearness Allowance, Transport Allowance, House Rent Allowance etc.
The Dearness Allowance (DA) is a cost of living adjustment allowance paid to Government employees and pensioners in India.
The Dearness Allowance was introduced following the First World War, and was then known as the "Dear Food Allowance".
Dearness allowance with effect from January or July of a particular year in the future, once the AICPI(IW) for a particular month is published by the Government.
As of June 2012, the Dearness Allowance is calculated as a percentage of an Indian citizen's basic salary to mitigate the impact of inflation on people belonging to the low income group.
The Minimum Wages Act, 1948 generally specifies minimum wage rates on a per day basis, and extends to the entire country and is revised within a period of not less than five years, however there is a provision to increase dearness allowance every two years.
The table below briefly shows if the states account for Variable Dearness Allowance (VDA) that are linked and fixed according to a cost of living index (CPI in case of India), the range of minimum wages, and when these wages were last updated/revised.
The term "D A" includes any payment made to protect an employee against inflation and rising prices; dearness allowance, variable dearness allowance (VDA), interim relief and dearness pay are all included in the "DA" category.
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