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easyMCQCUET 2025 31 May Shift 12026CUET Accountancy
1 mark

What does Dearness Allowance (DA) compensate for?

  1. A
    Housing expenses
  2. B
    Fuel charges
  3. C
    Erosion in purchasing power due to inflation
  4. D
    Commuting cost

Solution & Step-by-step Explanation

Dearness Allowance (DA) is a cost-of-living adjustment allowance paid to public sector and salaried employees in India to mitigate and compensate for the impact of inflation and the erosion of purchasing power.

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What does Dearness Allowance (DA) compensate for?
A
Housing expenses
B
Fuel charges
C
Erosion in purchasing power due to inflation
D
Commuting cost

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