The full form of DA is "Dearness Allowance" and TA is "Travelling Allowance". TA and DA refer to funds paid by the company to workers. A specific amount of the basic wage is distributed among the workers as a poverty allowance.
Dearness Allowance
DA is a measure of inflation and salaries paid in India, Pakistan and Bangladesh to government employees, PSEs (public sector employees) and pensioners. Dearness Allowance is intended to mitigate the impact of inflation on an individual as a percentage of the basic salary of an Indian individual.
DA is paid to an employee to adjust his living expenses and is calculated as a percentage of basic pay.
DA types
The abbreviations TA & DA are variable. In particular, when it comes to DA, there are two different types of variable allowance for price reductions.
- Industry: IDA or Industrial Dearness Allowance is for public sector employees of the central government.
- Variable: VDA or Variable Price Reduction Allowance is for Central Government employees which is revised every six months as per Consumer Price Index.
TA & DA ideally helps employees to meet their living expenses by keeping aside their travel expenses for their duties. With these two benefits, your company will give you the benefit of saving money for living.
Travelling Allowance
TA refers to the amount of money paid to workers during a business trip for travel and other expenses. Airfare, hotel bills, food expenses, and so on are usually included.
Each month, some businesses pay fixed travel expenses. Some businesses require you to submit travel expenses, hotel expenses, and other expenses in order to receive the money you paid on the business trip. Travel allowances are limited so that if the individual's expenses are higher, they must pay additional travel costs and the employee must spend within the limit.
What are the basic rules of TA?
Although receiving travel allowance sounds great, in order to take advantage of it, you need to follow some basic CK rules.
Stick to your work route: To get a TA, you must stick to your travel route for your duties. For example, if you are a delivery driver, then you would only receive an allowance for the route you traveled to fulfill your duties.
Traveling from your residence to your office: The full TA & DA form has rules that will give you an allowance for the route taken from your home to your office or other place of work. For example, if you have to visit a customer for a company, your organization will pay for those travel expenses. It is ideal when you have to fulfill your duties outside of your office.