Industrial DA hike for CPSE employees: Rate rises to 59.1% from October 1; check revised rates for 1997, 2007 and 2017 pay scales

The Ministry of Finance has announced the revision of Industrial Dearness Allowance (IDA) rates for executives and non-unionised supervisors of Central Public Sector Enterprises (CPSEs). The revised IDA rates of 59.1% for most employees will be effective from October 1, 2026, the Department of Public Enterprises said in an office memorandum (OM) dated October 27, 2026. The previous IDA rate was 55.7%.

Who will get revised IDA rates?

As per the OM, the board-level posts and non-unionised supervisors of CPSEs following the 1987, 1997, 2007 and 2017 pay scales will get it.


What will be the IDA hike for eligible employees?

The quantum of IDA payable from October 1, 2026, at the old system of neutralisation, will be an increase of (215) points, or Rs 430.

“At an average AICPI of 10069, DA payable may be Rs 18,728 to the executives holding board-level posts, below board-level posts, and non-unionised supervisors following IDA pattern in the CPSEs of 1987 pay scales,” the OM highlights.

What will be IDA rates for employees following different pay scales?

The IDA rate for the executives holding board-level and below-board-level posts, as well as non-unionised supervisors of CPSEs following the 1997, 2007, and 2017 pay scales, will be different.

For the 1997 pay-scale employees, it will be 489.5%; for the 2007 pay-scale employees, it will be 249.2%; for the 2017 pay-scale employees, it will be 59.1%.

All administrative ministries/departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end, says the OM.

Who gets the Industrial Dearness Allowance?

The Industrial Dearness Allowance (IDA) is paid to Central Public Sector Enterprises employees whose salary structure follows the IDA pay pattern.

The IDA differs from the Dearness Allowance (DA) given to central government employees, which applies under the Central Government pay structure.

One of the key differences between the two is that while the DA for central government is revised once every six months, eligible employees see the IDA revised every three months.

The following categories of employees get the IDA, depending on their salary structure and service rules:

CPSE executives:

Officers who work in CPSEs, including those at board level and below board level.

Non-unionised supervisors:

Supervisory employees working at CPSEs and covered under the IDA salary pattern.

Unionised and workmen:

Industrial workers and other employees whose pay scale follow the IDA pattern.

Employees under different IDA pay scales

Employees who are covered under different pay-revision regimes, including the 1987, 1992, 1997, 2007 and 2017 pay scales.

Some examples of CPSEs where IDA applies

Some of the CPSEs where employees get IDA are the Steel Authority of India Limited (SAIL), the Oil and Natural Gas Corporation Limited (ONGC), the Bharat Heavy Electrical Limited (BHEL), etc.

How is IDA calculated?

For CPSE employees on the 2017 pay scales, the IDA percentage is calculated as follows:

IDA%= Average AICPI of 3 months-277.3/277.3 x 100