Sail E0 Webinar
Question
The basis of determining dearness allowance (D.A.) to government employees in India is
Options:
A .  Standard of living
B .  National income
C .  Consumer Price Index
D .  Per capita income
Answer: Option C
Answer: (c)
The basis of determining dearness allowance (D.A.) to government employees in India is the consumer price index. Dearness Allowance (DA) is an allowance paid to employees to compensate them for the erosion of real income/wage due to inflation.
The increase in the cost of living and the consequent erosion of income is measured in terms of a consumer price index number and, DA to be sanctioned to employees is determined on the basis of the percentage increase in that index.
Dearness Allowance - D.A. is calculated as a percentage of an Indian citizen’s basic salary to mitigate the impact of inflation on people.

Was this answer helpful ?
Next Question

Submit Solution

Your email address will not be published. Required fields are marked *

Latest Videos

Latest Test Papers