CPSE allowance rates for eligible executives and non-unionised supervisors in India have been revised effective October 1, 2026. The Industrial Dearness Allowance (IDA) rate for employees on the 2017 pay scale rises to 59.1% from 55.7%.

Key Takeaways

  • The revised rates differ across the 1997, 2007 and 2017 pay scales.
  • The October 27 memorandum also addresses employees on the 1987 pay scale.
  • Administrative ministries and departments have been asked to notify the enterprises under their control.

Revised CPSE allowance rates by pay scale

The Department of Public Enterprises set out the revision in an office memorandum dated October 27, 2026. It covers executives at board level and below board level, as well as non-unionised supervisors, who follow the specified IDA pay scales.

For the 1987 pay scale, the memorandum says the increase under the old system of neutralisation is 215 points, or ₹430. It says the allowance payable may be ₹18,728 at an average All India Consumer Price Index of 10,069.

ItemDetails
1987 pay scaleIncrease of 215 points, or ₹430, under the old system of neutralisation
1997 pay scaleIDA rate of 489.5%
2007 pay scaleIDA rate of 249.2%
2017 pay scaleIDA rate of 59.1%

How the allowance differs from central government DA

IDA applies to employees whose salary structure follows the industrial allowance pattern. It differs from the dearness allowance paid under the central government pay structure: IDA is revised every three months, while central government DA is revised every six months.

The Labour Bureau’s industrial workers’ consumer price index measures changes in retail prices for a fixed basket of goods and services. The bureau says the index is used to regulate wages and dearness allowances.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.