Dearness Allowance
Legal definition for Indian law research
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).
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).
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