Centre Hikes Industrial Dearness Allowance For CPSE Executives And Supervisors | Business News


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The Centre revises IDA rates for CPSE executives and non-unionized supervisors, effective from October 1, 2025, based on AICPI 9611, impacting 1987 to 2017 pay scales.

IDA Hike: The new rates became effective retrospectively from October 1, 2025. 

IDA Hike: The new rates became effective retrospectively from October 1, 2025. 

Industrial Dearness Allowance Hike For CPSE Executives: The Centre has announced a revision in the Industrial Dearness Allowance (IDA) rates for Central Public Sector Enterprises (CPSEs) executives holding Board-level and below Board-level posts, along with non-unionized supervisors. The new rates became effective retrospectively from October 1, 2025.

The new rates are being applied to CPSE employees drawing pay under the 1987, 1992, 1997, 2007, and 2017 pay scales. The updated rates are based on the average All India Consumer Price Index (AICPI) for industrial workers for the quarter ending August 2025, which stood at 9611.

For CPSEs following the 1987 pay scale, the increase in IDA works out to Rs 356 per point shift (for an increase of 178 points), resulting in a payable DA of Rs 17,812.

DA Rates for various Pay Ranges w.e.f. 01.10.2025:

  • Up to Rs 3,500: 774.5% of pay (minimum Rs 17,024)

  • Rs 3,500–6,500: 580.9% of pay (minimum Rs 27,108)

  • Rs 6,500–9,500: 464.7% of pay (minimum Rs 37,759)

  • Above Rs 9,500: 387.2% of pay (minimum Rs 44,147)

The rates of DA payable to the executives holding Board level and below Board level posts and non-unionized supervisors of CPSEs following 1997, 2007 & 2017 Pay Scales from 01.10.2025 are as under:

Pay Scale (IDA) Revised DA Rate (Effective from 01.10.2025)
1997 Pay Scale 462.7%
2007 Pay Scale 233.2%
2017 Pay Scale 51.8%

The order said that the payment on account of dearness allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.

All administrative ministries and departments have been instructed to inform CPSEs under their purview to implement the revised rates accordingly. The revision aims to offset inflationary pressure and maintain the real income of CPSE employees.

Varun Yadav

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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