Dearness Allowance hike: Revised rates announced for these CPSE employees; check IDA for 1987, 1997 and 2017 pay scales

The Department of Public Enterprises (DPE), under the Ministry of Finance, has revised Industrial Dearness Allowance (IDA) rates for executives and non-unionised supervisors working in Central Public Sector Enterprises (CPSEs).

The revised rates came into effect on October 1, 2026, with employees covered under the 2017 pay scales eligible for an IDA rate of 59.1%.

According to an office memorandum dated October 27, 2026, the revised rates also apply to employees following the 1997 and 2007 pay scales. The applicable percentage varies according to the pay scale under which an employee is covered.

What are the revised IDA rates for CPSE employees?

The government has specified the following IDA rates for executives holding board-level and below-board-level posts, as well as non-unionised supervisors, under the respective pay scales.

The memorandum states: “The rates of Dearness Allowance (DA) payable w.e.f. 01.10.2026 to executives holding Board-level and below Board-level posts, as well as non-unionized supervisors of CPSEs following the 1997, 2007, and 2017 pay scales, shall be 489.5% for the 1997 pay scale, 249.2% for the 2007 pay scale, and 59.1% for the 2017 pay scale.”

How much IDA is payable to employees under the 1987 pay scale?

The memorandum separately specifies the allowance payable to employees following the 1987 pay scale under the old system of neutralisation.

It states: “The quantum of IDA payable from 01.10.2026 at the old system of neutralization, for an increase of (215) points, may be Rs. 430/-. At Average AICPI 10069. DA payable may be Rs. 18,728 to the executives holding Board level post, below Board level post and non-unionized supervisors following IDA pattern in the CPSEs of 1987 pay scales.”

Accordingly, the memorandum specifies an IDA amount of ₹18,728 for the covered employees following the 1987 pay scale, based on the stated index and calculation method. This is expressed as an amount rather than a percentage, unlike the rates specified for the 1997, 2007 and 2017 pay scales.

Which CPSEs and employees does the order cover?

The revised rates cover executives holding board-level and below-board-level posts and non-unionised supervisors of CPSEs following the specified IDA pay scales.

Employees should confirm their applicable pay scale and revised allowance with their respective CPSE’s payroll department.

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