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Consider the following statements regarding Dearness Allowance (DA):
1. The DA is provided to government employees to make their salaries on par with those of the private sector.
2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).
3. The allowance is revised periodically twice a year.
Which of the statements given above is/are correct?
- a)1 and 2 only
- b)2 and 3 only
- c)3 only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding Dearness Allowance (DA):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. It is determined using the government employee basic salary percentage. Hence statement 1 is not correct.
- Dearness Allowance can be understood as a component of salary which is some fixed percentage of the basic salary, aimed at hedging the impact of inflation.
- Since DA is directly related to the cost of living, the DA component is different for different employees based on their location. This means DA is different for employees in the urban sector, semi-urban sector, or rural sector.
- The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The Labour Bureau is a wing of the Labour Ministry. Hence statement 2 is correct.
- The allowance is revised periodically twice a year. The last revision in DA was done on September 2022. The Centre had increased DA by four percentage points to 38% based on the percentage increase in the 12 monthly average of All India Consumer Price Index for the period ending June 2022. Hence statement 3 is correct.
- The expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval.
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Community Answer
Consider the following statements regarding Dearness Allowance (DA):1....
Explanation:
Statement 1: The DA is provided to government employees as an allowance to offset the impact of inflation and ensure that their salaries remain relatively competitive with those in the private sector. It is not specifically meant to make their salaries on par with the private sector, but rather to help them cope with rising costs of living.
Statement 2: DA is indeed calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which reflects changes in retail prices of essential commodities and services. This index is used to determine the rate at which DA should be adjusted to account for inflation.
Statement 3: The allowance is typically revised periodically, usually twice a year, to ensure that it accurately reflects the current cost of living. The adjustments are made based on changes in the CPI-IW and are meant to help maintain the purchasing power of government employees' salaries.
In conclusion, statement 2 and 3 are correct. DA is calculated based on the CPI-IW and is revised periodically, usually twice a year, to account for changes in the cost of living.
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Consider the following statements regarding Dearness Allowance (DA):1. The DA is provided to government employees to make their salaries on par with those of the private sector.2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).3. The allowance is revised periodically twice a year.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements regarding Dearness Allowance (DA):1. The DA is provided to government employees to make their salaries on par with those of the private sector.2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).3. The allowance is revised periodically twice a year.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Dearness Allowance (DA):1. The DA is provided to government employees to make their salaries on par with those of the private sector.2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).3. The allowance is revised periodically twice a year.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Dearness Allowance (DA):1. The DA is provided to government employees to make their salaries on par with those of the private sector.2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).3. The allowance is revised periodically twice a year.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements regarding Dearness Allowance (DA):1. The DA is provided to government employees to make their salaries on par with those of the private sector.2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).3. The allowance is revised periodically twice a year.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding Dearness Allowance (DA):1. The DA is provided to government employees to make their salaries on par with those of the private sector.2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).3. The allowance is revised periodically twice a year.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding Dearness Allowance (DA):1. The DA is provided to government employees to make their salaries on par with those of the private sector.2. DA is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW).3. The allowance is revised periodically twice a year.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
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