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Net monthly salary of an employee was 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:?
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Net monthly salary of an employee was 3000 in 1980. The consumer price...
In 1980 Rs 3000 for 100 index number
so 1 index number it will be Rs 30
so, For 1980 it will be 250*30 i.e.rs 7500 is allowance
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Net monthly salary of an employee was 3000 in 1980. The consumer price...
Calculation of Dearness Allowance:
To calculate the dearness allowance (DA) that needs to be paid to the employee, we need to adjust the net monthly salary of 3000 in 1980 to account for the increase in the cost of living as indicated by the consumer price index (CPI) number.

Step 1: Calculate the increase in CPI:
- CPI in 1985 = 250
- CPI in 1980 (base year) = 100
- Increase in CPI = (250 - 100)/100 = 1.5

Step 2: Calculate the adjusted net monthly salary:
Adjusted net monthly salary = Net monthly salary in 1980 * Increase in CPI
Adjusted net monthly salary = 3000 * 1.5 = 4500

Step 3: Calculate the Dearness Allowance:
Dearness Allowance = Adjusted net monthly salary - Net monthly salary in 1980
Dearness Allowance = 4500 - 3000 = 1500
Therefore, the Dearness Allowance to be paid to the employee is 1500 to compensate for the increase in the cost of living between 1980 and 1985.
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Net monthly salary of an employee was 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:?
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Net monthly salary of an employee was 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Net monthly salary of an employee was 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Net monthly salary of an employee was 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If he has to be rightly compensated, then the Dearness Allowance to be paid to the employee is:?.
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