The Department of Public Enterprises revised Industrial Dearness Allowance rates for executives and non-unionised supervisors at Central Public Sector Enterprises, effective October 1, 2026.
The revised rates cover CPSE executives and supervisors
The Department of Public Enterprises, under the Ministry of Finance, revised Industrial Dearness Allowance rates for executives and non-unionised supervisors working in Central Public Sector Enterprises. The new rates took effect on October 1, 2026. The change applies to employees following specified IDA pay scales, with the applicable rate depending on the scale they follow.¹
An office memorandum dated October 27, 2026 sets out the revised rates. It covers executives holding board-level and below-board-level posts, as well as non-unionised supervisors of CPSEs. The memorandum’s scope includes both senior executives and employees below board level, alongside the supervisor group; the rates are organised by pay scale rather than given as one amount for all covered employees.¹
Employees need to identify the pay scale they follow to locate the rate stated for their group.¹
The 1997, 2007 and 2017 scales have separate percentage rates
For employees on the 1997 pay scale, the IDA rate is 489.5%; for the 2007 pay scale, it is 249.2%; and for the 2017 pay scale, it is 59.1%. The revised rates therefore retain distinct percentages for each of these scale groups. Employees need to identify the pay scale they follow to locate the rate stated for their group.¹
The 1987 scale uses a rupee amount under the old system
For employees following the 1987 pay scale, the memorandum states IDA payable of ₹18,728 under the old system of neutralisation. That amount applies to executives holding board-level posts, executives below board level and non-unionised supervisors following the IDA pattern in CPSEs. Unlike the percentage rates listed for later pay scales, the 1987 provision is expressed as a rupee amount.¹
The memorandum also specifies an increase of 215 points for the 1987 scale, corresponding to Rs. 430/- under the old system of neutralisation. This point increase and its corresponding rupee amount are given alongside the payable IDA figure. The 1987-scale details therefore set out both the amount payable and the increase associated with the revision.¹
Know Your Pay Scale Before Negotiating
If you work at a Central Public Sector Enterprise, your Dearness Allowance now depends entirely on which pay scale you follow. Before accepting a role or negotiating a raise, confirm which scale applies to your position. A newer scale may mean a lower percentage rate, so compare the actual rupee impact rather than assuming a higher percentage always means more pay.¹
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Read More →For those on the older 1987 scale, the revision is a fixed amount of ₹18,728, plus an increase of 215 points equal to ₹430. This means your compensation is not percentage-based, so track the rupee figure directly when evaluating offers or increments. If you are considering a move between CPSEs, ask which pay scale the new role uses, as this determines your IDA and overall take-home pay.¹
Know Your Pay Scale Before Negotiating If you work at a Central Public Sector Enterprise, your Dearness Allowance now depends entirely on which pay scale you follow.
Sources
Written by Career Ahead AI. AI can make mistakes, so verify key facts. Report errors to support@careeraheadonline.com
