Dearness Allowance - Definition - Law Dictionary Home Dictionary Definition dearness-allowance

Definition :

Dearness allowance, it is inextricably intertwined with price rise, it being an attempt to compensate loss in real wages on account of price rise considered as a passing phenomenon by compensation, Workmen Employed by M/s. Indian Oxygen Ltd. v. Indian Oxygen Ltd., AIR 1986 SC 125: (1985) SCR 111.

The whole purpose of dearness allowance being to neutralise a portion of the increase in the cost of living, it should ordinarily be on a sliding scale and provide for an increase on rise in the cost of living and a decrease on a fall in the cost of living. 1961 (2) LLJ 352 quoted, Hindustan Times v. Their Workmen, AIR 1963 SC 1333 (1338).