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Dearness Allowance (DA) is typically calculated as a percentage of the basic salary, often based on inflation indices. The formula is: DA = (Basic Salary × DA Percentage) / 100. House Rent Allowance (HRA) is generally calculated as a percentage of the basic salary, depending on the city of residence and company policy. The formula is: HRA = (Basic Salary × HRA Percentage) / 100, with common percentages being 40% for non-metro cities and 50% for metro cities.

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1d ago

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