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English definition of “dearness allowance”

dearness allowance

noun [U] uk   Indian English us  
an amount of money that is added to a person's basic pay or pension because of rising prices and other costs: Giving relief to its employees and pensioners from inflation, the central government announced a seven percentage point increase in dearness allowance.
(Definition of dearness allowance from the Cambridge Advanced Learners Dictionary & Thesaurus © Cambridge University Press)
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