Multiple choice general knowledge

The basis of determining dearness allowance to employees in India is?

  1. National Income

  2. Consumer Price Index

  3. Standard of Living

  4. Per Capita Income

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dearness allowance is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which measures inflation. As CPI increases, DA is revised to compensate for the rising cost of living and protect employees' real income from erosion.