Freezing of Dearness Allowance CPSEs IDA pay scales revision guidelines at current rates till 30th June 2021

Highlights of the Freezing IDA order:

  1. IDA will be freezed till 30th June 2021.
  2. IDA rate from 01.07.2020 to be continued till 30.06.2021.
  3. From 1st July 2021, the effective IDA rate will consider the 3 missed IDA rate of 01.10.2020, 01.01.2021, 01.04.2021.
  4. No arrears will be paid for these 3 missed quarters (01.10.2020, 01.01.2021, 01.04.2021).

Industrial Dearness Allowances to be revised quarterly for Central Public Sector Enterprises (CPSEs) or PSUs has been freezed by Department of Public Enterprises under the ministry of Heavy Industries & Public Enterprises.

Freezing of DA rates - CPSEs IDA pay scales revision till 30th June 2021
Freezing of DA rates – CPSEs IDA pay scales revision till 30th June 2021

Freezing of IDA, Dearness Allowances for CPSE employees till 30th June 2021:

Freezing of Dearness Allowances to employees of Central Public Sector Enterprises (CPSEs) drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines at current rates till 30th June 2021 order has been issued on 19th Nov’ 20.

The order copy can be downloaded here:Freezing-DA-rates-for-IDA-pay-scales-up-to-30.06.2021DOWNLOAD

The ministry of Heavy Industries & Public Enterprises has already freezed DA /DR for Central Government employees on 23.03.2020. Now, Government of India has issued IDA freezing order for CPSE employees too.

Government of India had released average AICPIN for the quarter Jun’20, Jul’20, Aug’20. With these average AICPIN numbers, the IDA for 3rd PRC should have been increased by 2.52 % from October 2020 for 2017 (3rd PRC) pay scales. Similarly, the IDA from October 2020 for 2nd PRC should have been increased by 5.55 % for 2007 (2nd PRC) pay scales. But, now these increments have been frezzed till 30th June 2021.

No DA/DR to Central Government employees till July 2021

IDA rate calculation for 2nd PRC and 3rd PRC from 1st October 2020

From 01.10.2020, IDA will increase to 20.9 %, increased by 2.52 % for 3rd PRC or 2017 pay scale employees. For 2nd PRC or 2007 pay scale, IDA will increase to 165.4 % increased by 5.55 % after declaration of August AICPIN on 30.09.20.

Since, the DA increments have been freezed, so the DA from 1st OCT’20 number will be added while calculating DA from 1st July 2021.

The AICPI – IW (All-India Consumer Price Index – Industrial Workers) is released by Labour Bureau, under Ministry of Labour and Employment, on the last working day of every month for previous month. And based on the consecutive 3 months, means 1 quarter, calculation of average is done to finalize the IDA rate, which may be more or less than the previous quarter IDA rate.

  1. IDA for 3rd PRC from 1st October 2020 will be 20.9 %, increased by 2.52 % for 2017 pay scale.
  2. IDA for 2nd PRC from 1st October 2020 will be 165.4 %, increased by 5.55 % for 2007 pay scale.
  3. IDA from from 1st October 2020 is yet to be declared for 1997 pay scale.
  4. IDA from from 1st October 2020 is yet to be declared for for 1987 & 1992 pay scale (based on the pay-band).


AICPIN -IW of last 3 months

  1. 22.10.2020 – Sep AICPIN – 340  (118 x 2.88 = 340)
  2. 30.09.2020 – Aug AICPI – 338
  3. 31.08.2020 – Jul AICPI – 336

Based on the AICPI-IW data, Department of Public Enterprises (DPE) under Ministry of Heavy Industries & Public Enterprises calculates the new IDA rate and releases the press note indicating the change in IDA rate.

Similarly, after the release of aicpin-iw data of September 2020, October 2020 and November 2020 by the Ministry of labour and employment, the IDA from 1st January 2021 for PSU, CPSE and Govt. employees will be decided for 3rd PRC, 2nd PRC etc.

Past change of IDA for CPSE employees for 2017 (3rd PRC), 2007 (2nd PRC), 1997, 1987 & 1992 with DPE letter:

The current data of IDA since 01.01.2018 for all the pay scale as well as the historical data of all the CPSE pay scales implemented from year 2017, 2007, 1997 and 1987 & 1982 are compiled here.

This will give you the reference to compare all the data among the different pay scales in different times, how much differences are among the pay scales and in same pay scale, what is the timeline of IDA change.

Here the IDA change has been written for a quarter for all the pay scales. These letters are issued by the DPE under MHIPE. The official letters issued by them has been attached here in the link. Click on the ‘IDA % number’ link to fetch the official letter from the DPE website.

PeriodIDA for 3rd PRC or 2017 pay scaleIDA for 2nd PRC or 2007 pay scaleIDA for 1997 pay scaleIDA for 1987 & 1992 pay scale
01.10.2020 to 31.12.202020.9 %, But will be paid 18.4%165.4 %, But will be paid 159.9%Same as DA from 01.07.20Same as DA from 01.07.20
01.07.2020 to 30.09.202018.4 %159.9 %338.8%291-582%
01.04.2020 to 30.06.202018.7%160.7%340.2%292-584%
01.01.2020 to 31.03.202017.2 %157.3 %334.3 %287-575%
01.10.2019 to 31.12.201914.8 %152%325.5%280-561%
01.07.2019 to 30.09.201912.4 %146.7%316.6%273-547%
01.04.2019 to 30.06.201910 %141.4%307.5%266-533%
01.01.2019 to 31.03.20198.8 %138.3%303.1%263-526%
01.10.2018 to 31.12.20187.3 %135.6%297.8%259-518%
01.07.2018 to 30.09.20183.8 %128%284.8%249-498%
01.04.2018 to 30.06.20183.5 %127.2%283.5%248-496%
01.01.2018 to 31.03.20183.4 %126.9%283.1%247-495%

History of Dearness allowance DA (IDA) hike for central public sector enterprises of 3rd PRC(2017 ), 2nd PRC (2007), 1st PRC (1997) and 1987 & 1992

How to calculate IDA rate for 3rd PRC or 2017 pay scale? Example:

  • Average AICPI (2001=100) for the quarter Mar 2020 to May 2020:
  • Aug 2020 = 338
  • Jul 2020 = 336
  • Jun 2020 = 332
  • Average of the quarter = 335.33
  • Link point = 277.33 (as on 01.01.2017)
  • Increase over Link point = 58 = [335.33- 277.33]
  • DA rate effective from 01.10.2020 = 20.91 = [(58/ 277.33) x 100]

How to calculate IDA rate for 2nd PRC or 2007 pay scale? Example:

  • Average AICPI (2001=100) for the quarter Mar 2020 to May 2020:
  • Aug 2020 = 338
  • Jul 2020 = 336
  • Jun 2020 = 332
  • Average of the quarter = 335.33
  • Link point = 126.33 (as on 01.01.2007)
  • Increase over Link point = 209 = [335.33- 126.33]
  • DA rate effective from 01.10.2020 = 165.44 = [(209/ 126.33) x 100]

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