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.

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.”

• 1997 pay scale: DA revised to 489.5% from October 1, 2026.
• 2007 pay scale: DA revised to 249.2% from October 1, 2026.
• 2017 pay scale: DA revised to 59.1% from October 1, 2026.
• 1987 pay scale: DA payable is ₹18,728 under the old system of neutralisation, as specified in the memorandum.

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.

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.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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