ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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House Allowance
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Dearness Allowance
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Employees Allowance
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None of the above
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Detailed explanation-1: -Dearness Allowance (DA) is the cost-of-living adjustment allowance that the government provides to both current and retired members of the public sector. Both employees in India and Bangladesh are covered by the DA component of the compensation. It is determined using the government employee basic salary percentage.
Detailed explanation-2: -Dearness allowance is a cost of living adjustment that the Government pays to public sector employees and pensioners. It is calculated as a percentage of basic salary to curb the effect of inflation.
Detailed explanation-3: -Dearness allowance is the adjustment for the cost of living that employees are offered. The government provides a dearness allowance to cope with rising inflation.
Detailed explanation-4: -Currently, D.A. stands at 50% of the basic salary of an employee.
Detailed explanation-5: -Presently, it stands at 50% of the basic salary. This has been a result of the constant enhancement in the DA ever year to offset the adverse effects of inflation. As per the rules, it is a practice to merge the DA with basic salary when it crosses the level of 50%.