What is the meaning of the dearness allowance in the payroll, and how is it calculated?

Dearness allowance is a sum of money paid to employees to counter inflation. It is normally computed as a percentage of the basic wages and can change depending on the place of work (urban, semi-urban, or rural). It is regularly revised by the government according to the Consumer Price Index (CPI), and it is fairly compensated due to fluctuation of costs of living. Know more about the dearness allowance meaning in the workforce.