Relief news has emerged for the executives and non-unionized supervisors of Central Public Sector Enterprises (CPSEs) owned by the Central Government. While on one hand central government employees are waiting for an increase in their Dearness Allowance (DA) for the July-December period, on the other hand, employees working in CPSEs have got a big increase in Industrial Dearness Allowance (IDA).

The Department of Public Enterprises has announced the new rates of IDA. This amendment, made keeping in mind the inflation trend, will increase the monthly salary of lakhs of employees across the country.

What are the new IDA rates?

As per the government notification, these new rates will be applicable to CPSE employees falling under the pay scales of 1987, 1997, 2007 and 2017:

• 2017 Pay Scale: Dearness Allowance has increased to 55.7%.


• 2007 Pay Scale: The new rate has been fixed at 241.7%.


• 1997 Pay Scale: Allowance has increased to 476.9%.


• 1987 Pay Scale: IDA has been fixed at ₹18,298 based on the average of All India Consumer Price Index (AICPI) of 9,854.

This increase will directly benefit officers and employees working in many big sectors like energy, oil and gas, infrastructure, manufacturing, steel, coal, power and financial services.

How much will be the impact on salary?

Due to this increase in IDA, there will be an increase in the take-home salary of the employees. For example, if the basic salary of an employee under the 2017 pay scale is ₹ 50,000, then as per the new IDA rate of 55.7%, he will get ₹ 27,850 as dearness allowance. The total amount received by each employee will be decided on the basis of his basic salary.

What is Industrial Dearness Allowance (IDA)?

Industrial Dearness Allowance (IDA) is an allowance given to employees to protect them from the effects of inflation. Its calculation is done on the basis of All-India Consumer Price Index (AICPI) data. As inflation increases, IDA is revised from time to time to maintain the purchasing power of the employees.

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