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Question

Which of the following is included in compensation of employees?

A
Dearness Allowance
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B
Tools given to employees to be used during work
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C
Payment by insurance company to an injured employee
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D
Contribution by employee to provident fund
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Solution

The correct option is A Dearness Allowance
Compensation of employees refers to the payment which an employee gets against the output generated by him in the firm. It includes the basic pay, dearness allowance which is the amount required for the basic consumption, and commission if any. Hence, option A is correct.

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