Dearness Allowance (DA) is paid to employees to compensate for inflation. It is calculated based on the Consumer Price Index (CPI). CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The basis of determining Dearness Allowance (DA) provided to the employees in India is
Asked in GS 32 2023 IS DEEO 1505 2024 · Topic: National Income & Gross Domestic Product (Per Capita Income and its significance)
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Answer: B. consumer price index
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