Centre revises dearness allowance rates for CPSE executives

New Delhi: The government has revised the Industrial Dearness Allowance (IDA) rates for executives and non-unionized supervisors in Central Public Sector Enterprises (CPSEs), marking another adjustment aimed at aligning compensation levels with rising cost-of-living indicators, the finance ministry said in a statement on Wednesday.

The revised rates will take effect from 1 October 2025, and apply to employees across multiple pay scales, from 1987 to 2017.

To be sure, the 1987, 1992, 1997, 2007, and 2017 pay scales refer to the government's pay commission recommendations, which set the salary structure for public sector employees.

For employees drawing pay under the 1987 scales, the allowance has been revised to ₹356, with the total amount payable at an average All India Consumer Price Index (AICPI) of 9611 standing at ₹17,812 per eligible executive and supervisor, the finance ministry said.

The 1992 pay scales see steeper adjustments across income brackets: 774.5% (minimum ₹17,024) for pay up to ₹3,500; 580.9% (minimum ₹27,108) for pay between ₹3,500 and ₹6,500; 464.7% (minimum ₹37,759) for pay between ₹6,500 and ₹9,500; and 387.2% (minimum ₹44,147) for pay above ₹9,500, it added.

For subsequent pay scales, the revised DA rates are 462.7% for 1997, 233.2% for 2007, and 51.8% for 2017, the ministry said.

Inflation adjustment

The revision is based on the latest AICPI data and follows the standard neutralization mechanism used to offset inflationary pressures for CPSE employees.

The finance ministry, in its consolidated order, said that the updated DA rates would apply uniformly to executives at both Board and below-Board levels, as well as non-unionized supervisors.

The move is expected to benefit thousands of employees across key public enterprises, including energy, infrastructure, and heavy industries, sectors where pay structures have historically followed the IDA-linked formula, it added.

The order also clarifies that fractional amounts will be adjusted in line with established norms, fractions of 50 paise and above will be rounded to the next higher rupee, while amounts below 50 paise will be ignored.

Administrative ministries and departments have been instructed to implement the revised rates without delay and to notify their respective CPSEs accordingly, the ministry said.

“The payment on account of dearness allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee, and the fractions of less than 50 paise may be ignored,” it added.