Dearness Allowance (DA)
An inflation-linked allowance calculated as a percentage of basic pay and revised periodically by the government.
DA exists to offset inflation, so the government revises the rate periodically rather than fixing it, and each revision applies to serving employees automatically. Because it is computed on basic pay, a higher pay level turns every revision into a larger rupee gain. This is also why published in-hand salary figures are ranges rather than exact amounts.
Related terms
Basic Pay
The pay-matrix figure before any allowance. DA and HRA are calculated as percentages of it, and deductions come off the resulting gross.
House Rent Allowance (HRA)
A percentage of basic pay that varies with the posting location's classification, which is why the same post pays different in-hand amounts in different towns.
Pay Matrix
The 7th Pay Commission table of pay levels and cells that replaced pay bands and grade pay. Every post maps to a level; annual increments move you cell by cell.
Pay Level
A post's row in the pay matrix, fixing its starting basic pay and progression. Group 4 posts sit around Level 8; Group 1 posts start around Level 22.
Grade Pay
The 6th Pay Commission add-on that indicated a post's seniority. Abolished by the 7th CPC and absorbed into pay-matrix levels; older notifications still mention it.
City Compensatory Allowance (CCA)
A small fixed allowance for postings in specified cities, compensating higher living costs on top of HRA.
This definition follows official TNPSC notifications and Tamil Nadu government orders. Sources: TNPSC official notifications. Figures are indicative and may change with each official notification. Data last reviewed: July 2026.
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