Dearness Allowance (DA) is given by certain employers to their employees, compensating them for an increase in the cost of living. The purpose behind providing this allowance is to reduce the impact of rising inflation. It is generally paid in the form of a fixed percentage of basic salary.

Example:
It is common for government employees as well as pensioners in India and Bangladesh to get dearness allowance to support cost of living adjustment in case of rising prices.