The Department of Public Enterprises (DPE), under the Ministry of Finance, has announced revised Industrial Dearness Allowance (IDA) rates for executives and non-unionised supervisors working in Central Public Sector Enterprises (CPSEs).
According to an office memorandum dated October 27, 2026, the revised rates are effective from October 1, 2026. The applicable allowance depends on the pay scale followed by the employee, with separate rates specified for the 1997, 2007 and 2017 pay scales. The memorandum also outlines the allowance payable to employees covered under the 1987 pay scale.
Revised IDA Rates for CPSE Employees in 2026
The DPE memorandum specifies the following revised Dearness Allowance rates for executives holding board-level and below-board-level positions, along with non-unionised supervisors working in CPSEs.
| Pay scale | Revised IDA rate | Effective date |
|---|---|---|
| 1997 pay scale | 489.5% | October 1, 2026 |
| 2007 pay scale | 249.2% | October 1, 2026 |
| 2017 pay scale | 59.1% | October 1, 2026 |
The revised percentages apply to employees covered by the respective IDA pay structures. Employees should identify the pay scale applicable to their position to determine the correct allowance rate.
IDA Amount for Employees Under the 1987 Pay Scale
The memorandum separately addresses employees following the 1987 pay scale, who continue to be covered under the older system of neutralisation.
According to the document, the IDA calculation refers to an increase of 215 points and an average All India Consumer Price Index (AICPI) of 10,069. Based on the stated calculation method, the memorandum specifies an IDA amount of ₹18,728 for covered executives holding board-level and below-board-level positions and non-unionised supervisors.
Unlike the rates for the 1997, 2007 and 2017 pay scales, this figure is stated as a monetary amount rather than a percentage.
Which Employees Are Covered by the Revised Order?
The revised IDA provisions apply to executives holding board-level and below-board-level posts, as well as non-unionised supervisors in CPSEs following the specified IDA pay scales.
The applicable allowance depends on the employee’s pay structure and the provisions outlined in the DPE memorandum. Employees who need clarification about their revised IDA should contact their organisation’s payroll or human resources department.
What Should CPSE Employees Check?
Employees should verify their applicable pay scale, the revised IDA rate and the amount reflected in their salary records from October 1, 2026. Those covered under the 1987 pay scale should also confirm the calculation used by their organisation.
For official information, employees can refer to notifications issued by the Department of Public Enterprises under the Ministry of Finance.
Disclaimer: This article is intended for general informational purposes and is based on the details provided about the DPE memorandum dated October 27, 2026. Employees should consult the original official memorandum or their CPSE’s payroll department to confirm the applicable allowance rate and payment details. Any subsequent government clarification or amendment will take precedence.