An allowance can be various things, depending on the context. The word allowance (pronounced) is an English word originating from the Old French word alouance (which evolved from Latin allaudāre, "to praise" and from Medieval Latin allocāre, "to assign"). The allow- root refers most generally to the concept of permission; an allowance in most abstract terms is an act or instance of something being allowed, that is, permitted. From this most general meaning flow many specific meanings of allowance in English.
Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas etc.
Pensioners and the family pensioners are granted D.A. against the price rise. During the reemployment under Central or State Government, Government undertaking, Autonomous body or Local Body, they are not eligible to draw D.A., in which case D.A. is allowed in addition to fixed pay or time scale. In other cases of reemployment D.A. is allowed subject to the limit of emoluments last drawn. D.A. is not allowed while the pensioner stays abroad and also in case of employees absorbed in public undertaking or bodies. If the pensioner stayed abroad without reemployment, he shall be eligible to draw D.A. on pension.