Dearness Allowances

Question

Dearness Allowances

15 Apr 2024

Answer :

Word Count : 316

Dearness Allowance (DA) is a component of the salary paid to employees by their employers as a means to counteract the impact of inflation. It is typically calculated as a percentage of the basic salary and is adjusted periodically to reflect changes in the cost of living index. The primary objective of providing DA is to ensure that the purchasing power of employees remains relatively stable despite fluctuations in the economy.

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