Full Form of TA and DA
TA – Travelling Allowance
DA – Dearness Allowance
Full Form of TA and DA is Travelling Allowance & Dearness Allowance. TA and DA are usually given to employees of an organization. Let us shed some light on TA and DA Full Form.
TA – Travelling Allowance
Travelling Allowance (TA) is a sum of money or payment allotted to an employee, by the respective organization or company, when that employee travels to any other place for work or business purposes. This money is not deducted from the salary of the employee. It is a bonus sum of money offered to him only for business purposes. TA usually consists of either perfectly or proximally calculated expenditures related to accommodation, mode of travel, meals, drink, and other incidentals. TA varies from one organization to the other.
It depends on the company agreement, individual agreement, position, and rank of the employee, or workplace policies. TA also varies depending on the type of travel whether it is overnight or not. If an employee uses private vehicles, it is not necessary that the vehicle has to be his own. TA is basically of two types. Employees are either paid in advance or they are paid when they produce related bills after their travel. In the case of advance TA payment, the employee has the opportunity to spend according to his needs and save some money. Allotment of TA has to be in accordance with the tax system policy of the respective country. Governments and companies updates their TA policies on specific periods.
DA – Dearness Allowance
Dearness Allowance (DA) is a specific some of the money allotted to an employee of government or public sector organizations, direct pensioners or family pensioners. This system is mainly available and active in India and Bangladesh. This allowance is provided to help people adjust their living costs.
DA is provided to the employees or pensioners depending on a mathematical calculation. This calculation depends on the specified percentage, of DA allotment, in accordance to an employee’s base salary. The total salary consists of the basic salary, DA, and housing allowances (if any). We can trace the earliest introduction of DA allotment back in the immediate years after World War II. Apart from the basic salary, DA is determined according to the recommendations of the pay commissions. It depends on various factors.
DA is decided upon the class of living location of the employee; like, whether it is an urban area or a rural area. The market situation related to the price of products as evaluated by the Consumer Price Index (CPI), price hike and recommendations of central and state commissions influence the allotment of DA. CPI is reviewed twice in a year, once on 1st January and again on 1st July. Industrial workers and print media workers are allotted DA based on different formulas and rules other than the formula used for central government employees.
