Question

There are 100 employees in an organization across five departments. The following table gives the department-wise distribution of average age, average basic pay and allowances. The gross pay of an employee is the sum of his/her basic pay and allowances.

There are limited numbers of employees considered for transfer/promotion across departments. Whenever a person is transferred/promoted from a department of lower average age to a department of higher average age, he/she will get an additional allowance of 10% of basic pay over and above his/her current allowance. There will not be any change in pay structure if a person is transferred/promoted from a department with higher average age to a department with lower average age.

What is the approximate percentage change in the average gross pay of the HR department due to transfer of a 40-yr old person with basic pay of Rs. 8000 from the Marketing department?

• A. 9%
• B. 11%
• C. 13%
• D. 15%
• E. 17%

Answer 1

The correct option is C 13%

Option (C) is the correct answer. Check the video for the approach.