401 views

Answer the following question based on the information given below.

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.

 Department Number of Employees Average Age (years) Average Basic Pay (Rs) Allowances (% of Basic Pay) HR 5 45 5000 70 Marketing 30 35 6000 80 Finance 20 30 6500 60 Business Development 35 42 7500 75 Maintenance 10 35 5500 50

There are limited number 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 due to transfer of a $40$-year old person with basic pay of Rs. $8000$ from the Marketing department?

1. $9\%$
2. $11\%$
3. $13\%$
4. $15\%$
5. $17\%$