I recently joined a company where the offer letter stated gratuity amount, tenure and provident funds and more. I did not know much about it so asked my HR to explain these things vividly to me and she did. Let me tell you what is Dearness Allowance in Gratuity. It is a component of salary which is some fixed percentage of the basic salary for hedging the impact of inflation. It differs for different employees in different sectors
Availing Home Loans at a minimum interest rate is now possible with NoBroker Home Loan facilityWhat is DA in Gratuity Calculation?
There is a formula to calculate the DA that are:
For Central Government Employees:Dearness Allowance % = [{Average of AICPI (Base Year 2001=100) for the past 12 months - 115.76}/115.76]*100
For Central Public Sector Employees:Dearness Allowance % = [{Average of AICPI (Base Year 2001=100) for the past 3 months - 126.33}/126.33]* 100
AICPI= All-India Consumer Price Index.
This is the DA in gratuity calculation.
What are the types of Dearness allowance?There are 2 types of DA that are:
- Industrial Dearness Allowance:
for employees in public sector
- Variable Dearness Allowance:
for employees of the central government
I hope you have understood
what is dearness allowance in gratuity and some more details about it.
Read More:Is Dearness Allowance taxable?
What is dearness allowance?
How to calculate dearness allowance?
Authors Of The Question
What Is Dearness Allowance In Gratuity?
Ranjeet
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2 Year
2022-08-30T09:49:10+00:00 2022-08-30T09:49:11+00:00Comment
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