If two employees (each with a basic pay of Rs. 6000) are transferred from Maintenance department to HR department and one person (with a basic pay of Rs. 8000) was transferred from Marketing department to HR department, what will be the percentage change in average basic pay of HR department?
Explanation:
Note that in this question, the percentage change in basic pay is asked. According to the common data, only the allowances (and hence the gross pay) is affected when a person is transferred. The basic pay of a person remains unaltered.
∴ The average basic pay after the transfers have taken place
=(5000×5)+(6000×2)+(8000)8=450008=5625
∴ The percentage change in the average basic pay of the HR department
=5625-50005000 × 100 = 12.5%
Hence, option (b).
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