The Dearness Allowance (DA) is a calculation on inflation and allowance paid to government employees (including public sector unit employees as public sector unit employees are also government employees) and pensioners in India, Bangladesh and Pakistan.

Dearness Allowance is calculated as a percentage of an Indian citizen's basic salary to mitigate the impact of inflation on people. Indian citizens may receive a basic salary or pension that is then supplemented by a housing or a dearness allowance, or both. The guidelines that govern the DA vary according to where one lives. DA is a fully taxable allowance..Two types : 1) DA given under terms of employment2) DA not given under the terms of employment