Expected IDA from October 2023 for CPSE Employees
Expected Industrial Dearness Allowance Calculation for Public Sector Employees with effect from
1st October 2023 first lets understand what CDA and IDA are. In the public sector, there are two types of Dearness Allowances provided to employees. One is CDA Pattern, or Central Dearness Allowance, and the other is IDA Pattern, or Industrial Dearness Allowance. The CDA Pattern is almost the same as Central Government DA pattern, but the IDA Pattern is different. It is almost the same as the Bank DA Pattern.
AICPIN Plays Crucial Role in IDA Calculation!
Indeed, IDA installments are disbursed on a quarterly basis. The All-India Consumer Price Index
number for industrial workers (general), based on the 1960=100 (AICPI) benchmark, is utilized to
determine compensation for employees of CPSEs in light of price fluctuations. IDA is granted
effective from January 1st, April 1st, July 1st, and October 1st.
Here is a step-by-step breakdown of the IDA calculation:
1. DA is paid for any increase in AICPIN (All India Consumer Price Index Numbers) above the
quarterly index average of 1708, which is the reference point for the revised pay scales.
2. The percentage increase in the quarterly average of AICPIN for the periods ending in February,
May, August, and November, compared to the base index of 1708, is calculated to one decimal
point.
3. The rate of compensation for PSE employees above the basic pay at the index average of 1708 is
expressed in whole numbers, with any fractions carried forward.
4. Quarterly averages are computed as follows:
– January IDA: September, October & November
– April IDA: December, January & February
– July IDA: March, April & May
– October IDA: June, July & August
Employee Categories in CPSEs:
CPSEs classify their employees into two groups: board level and below board level posts, including
non-unionized supervisors. These categories are based on the pay scale structure. For the purpose of
this calculation, we will focus on the first two categories: IDA 2017 Pay Scale and IDA 2007 Pay Scale.
How to Calculate Expected IDA from October 2023?
To determine the precise IDA percentage for CPSE employees, we need to consider three months of
AICPIN data. However, at present, we only have data for two months: July and July 2023. The AICPIN
for August has not yet been released by the Labour Bureau.
For this calculation, we will assume that the AICPIN for August will also be 139.7. Now, let;s proceed
with the calculation method:
- June 2023: 136.4 (Declared)
- July 2023: 139.7 (Declared)
- August 2023: 139.7 (Expected)
IDA Calculation for Employees Drawing 2007 Pay Scale
- Step 1: Convert the AICPIN to the old base year.
- Step 2: Calculate the average of the three months.
- Step 3: Subtract the average from 126.33.
- Step 4: The result is the expected IDA.
IDA Calculation for Employees Drawing 2017 Pay Scale
- Step 1: Convert the AICPIN to the old base year.
- Step 2: Calculate the average of the three months.
- Step 3: Subtract the average from 277.33.
- Step 4: The result is the expected IDA.