Dearness allowance is an income supplement to the salary of an employee to enable him to cope with the increasing cost of living. It occurs particularly in government and public sector employment. It is a provision that is adjusted with the trends in inflation after every six months or so, normally twice. Dearness allowance makes sure that employees are able to afford the price increment of necessities such as food, housing, and transportation.
What is dearness allowance, and what is the reason of having it in salary?
by Henry Powell -
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