DA stands for Dearness Allowance, which is a component of an employees salary aimed at hedging the impact of inflation. It is calculated as a percentage of the basic salary to curb the effect of inflation. DA is mainly applicable to government employees, but many private sector organizations also offer DA as a part of their employee compensation package. It is a cost-of-living adjustment typically calculated as a percentage of an employees basic salary. DA is calculated twice a year, in January and July, and is increased by the government every six months. The formula to calculate DA was changed in 2006 by the Government. Presently, DA is calculated as per the following formula: For Central Government Employees DA% = . The total DA calculation in the salary of public sector employees includes different parts like House Rent Allowance (HRA), Conveyance Allowance, and more. DA is added to the basic salary along with other components such as House Rent Allowance (HRA), Conveyance Allowance, and more to form the total salary. DA is fully taxable.