A very wonderful and happy news has emerged for the employees and officers working in government undertakings across the country. The Department of Public Enterprises (DPE) has officially announced the increase in Industrial Dearness Allowance (IDA) for the employees of Central Public Sector Enterprises (CPSEs) under the Central Government.
This revised and enhanced allowance will be fully effective on all eligible employees falling under different pay scales for the years 1987, 1997, 2007 and 2017.
New structure implemented from July 1, lakhs of employees will get direct benefits
The government has taken this important step with the aim of reducing the impact of rising inflation and maintaining a right balance between the salaries and expenses of the employees. This new structure of allowance and increased rates have been implemented from July 1.
This new DA has been decided on the basis of the latest data of All India Consumer Price Index (AICPI). DPE has issued strict instructions to all the concerned ministries and departments of the country to implement this amendment with immediate effect without any delay in all the undertakings or companies under their control. Lakhs of employees of government companies working in various important sectors like energy, manufacturing, infrastructure and financial services will get direct and huge financial benefits from it.
Know how much is the new IDA under which pay scale?
According to different pay scales of employees, the new revised rates of Industrial Dearness Allowance have been fixed as follows:
- 2017 Pay Scale: 55.7% of Basic Pay
- 2007 Pay Scale: 241.7% of basic salary
- 1997 Pay Scale: 476.9% of basic salary
- 1987 Pay Scale: Rs 18,298 (This is based on the average AICPI level of 9,854)
How will it affect your salary? Know the calculations
This increase will have a direct and big impact on your take-home salary. For example, if an employee is drawing a basic pay of Rs 50,000 under the 2017 pay scale, then according to this new and revised rate of 55.7%, his Industrial Dearness Allowance will now directly become Rs 27,850.
Similarly, the take-home salary of employees falling under all other pay scale categories will also increase as per their respective fixed rates, resulting in more money coming into their bank accounts every month.