Normally DA is paid as a compensation factor only in Government Organizations or very big Organizations having IR problems...
It mostly depends on the Inflation rate in the particular area / industrial sector...
i.e. you need to multiply the basic pay with inflation rate percent to get the DA to be paid...
When the DA is merged with the Basic pay then the calculation of next DA should be calculated from the date of merging
i.e. if Basic + DA = 10000 + 1000 is merged = 11000
Then next DA at 5% would be 11000+550 = 11550
Answered by
subu
at
5:12 PM on June 17, 2008