PSU INDUSTRIAL DEARNESS ALLOWANCE (IDA) (CALCULATION of Dearness Allowance, DA latest news today, PSU, Central Govt, Employee, CPSE, PSU, 3rd PRC, 7th Pay Commission, IOCL, BSNL, Coal India, HPCL, BPCL, NRL, FCI, SAIL, ONGC, POWERGRID, NTPC, GAIL, AAI, AICPI, Railway)
We will look comprehensively on the subject of PSU Industrial Dearness Allowance in this blog post, revealing its importance, advantages, and effects on CPSE’s employees. The Industrial Dearness Allowance (IDA) is a crucial part of the compensation package for the Indian employees in the government public sector unit. Here, we will illustrate the meaning, methodology, advantages, and economic impact of PSU Dearness Allowance so that you have all of the relevant information you require. Let us understand the world of PSU Dearness Allowance and its impact on CPSE employees’ life and the larger economy.
Table of Contents
What is Industrial Dearness Allowance in Salary?
A crucial component of the wages and benefits offered to employees working for India’s Public Sector Undertakings (PSUs) is the Industrial Dearness Allowance (IDA). It is an allowance that is indexed to inflation with the objective of reducing the effect of inflation and rising prices on the expense of living of the Employees by the Department of Public Enterprises under The Ministry of Finance, Govt of India. The Consumer Price Index (CPI) for industrial workers serves as the basis for the regular revisions of the DA, which typically take place on a quarterly basis (Paid in the month of January, April, July and October) every year. For CPSE employees, the Industrial Dearness Allowance (IDA) is crucial because it keeps their spending power stable in the face of inflationary pressures. In a nation like India, the cost of living is subject to change, and growing inflation raises the price of products and services. The IDA serves as a crucial lifeline, ensuring a respectable lifestyle and providing employees with financial security which they need to bear with the increase in price of daily consumption.
How is PSU Industrial Dearness Allowance Calculated?
PSU Industrial Dearness Allowance (IDA) is calculated using a mathematical method by using the All-India Consumer Price Index (AICPI) average growth rate. Every month, the central government publishes the CPI-IW data which is used to calculate the IDA % using a predetermined formula that accounts for the average inflation rate over a predetermined time period which is mentioned below:
IDA% = [(Average of AICPI for the last 3 months-277.33)/277.33]x100
*IDA% means Industrial Dearness Allowance Percentage,
*AICPI means All India Consumer Price Index
The Current Industrial Dearness Allowance (IDA) and its Historic Data.
The Department of Public Enterprises under The Ministry of Finance, Govt of India vide:
- Office Memorandum No W-02/0039/2017-DPE(WC)-GL-XIII/2023 Dated 7th July 2023 has declared the Industrial Dearness Allowance (IDA) for all executives and non-unionized supervisors of CPSEs under the Revision of Scales of pay w.e.f 01.01.2017 as 39.2%
- Office Memorandum No W-02/0002/2014-DPE(WC)-GL-XIV/2023 Dated 7th July 2023 has declared the Industrial Dearness Allowance (IDA) for all executives and non-unionized supervisors of CPSEs under the Revision of Scales of pay w.e.f 01.01.2007 as 205.6%
- Office Memorandum No W-02/0004/2014-DPE(WC)-GL-XV/2023 Dated 7th July 2023 has declared the Industrial Dearness Allowance (IDA) for all executives and non-unionized supervisors of CPSEs under the Revision of Scales of pay w.e.f 01.01.1997 as 416%
- Office Memorandum No W-02/0003/2014-DPE(WC)-GL-XVI/2023 Dated 7th July 2023 has declared the Industrial Dearness Allowance (IDA) for all executives and non-unionized supervisors following IDA scales on 1987 and 1992 as 701.9%
Comparison of PSU Industrial Dearness Allowance (IDA)
As per 3rd Pay Revision Committee (2017 Pay scale) for the year 2021,2022 & 2023 is as under:
| Month | IDA% in the year 2021 | IDA% in the year 2022 | IDA% in the year 2023 |
| January | 18.4 | 29.4 | 37.2 |
| April | 18.4 | 30.0 | 37.7 |
| July | 24.7 | 32.5 | 39.2 |
| October | 27.2 | 34.8 | 43.8 (w.e.f 1.10.2023) as per Govt of India circular dated 6th October, 2023 (No. W-02/0039/2017-DPE(WC)-GL-XVIII/2023 |
TAX Implication on Industrial Dearness Allowance (IDA)
TheIndustrial Dearness Allowance (IDA) is fully taxable in the hands of the Salaried Employee as the same is a part of the salary and are taxed as per Income Tax Rules of Govt of India.
Frequently Asked Questions (FAQs)
What is the Current Dearness Allowance rate in PSU?
The Current IDA which is effective from 01.07.2023 is 39.2 %
What is the current Dearness Allowance rate of Central Govt Employee?
The Current Dearness Allowance rate of Central Govt Employee is 42% of the Basic with effect from 01.01.2023
What is frequency of Revision of IDA?
The Industrial Dearness Allowance (IDA) are revised quarterly every year which is payable in the month of January, April, July and October.
What are the factors that influence the Dearness Allowance?
The PSU Dearness Allowance is revised based on a number of criteria such as the government’s policies, the growth rates of economic indicators like the Gross Domestic Product (GDP) and the Wholesale Price Index (WPI), as well as the unique cost of living indices for each region of the nation are some of the major determinants.
How is Dearness Allowance different from other allowance?
In contrast to other allowances, the Dearness Allowance is based on inflation and works to preserve the real worth of employees’ earnings. Other allowances may not be adjusted for inflation since they are tailored to specific expenses, such as House Rent Allowance (HRA) or Travel Allowance (TA).
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