The government has announced a revision in the Industrial Dearness Allowance (IDA) rates for executives and non-unionized supervisors in Central Public Sector Enterprises (CPSEs). This adjustment aims to align compensation with the increasing cost of living. The revised rates, effective from October 1, 2025, apply to employees across various pay scales, spanning from 1987 to 2017.

The announcement was made on Wednesday by the Finance Ministry. The ministry said that the adjustment in IDA rates is to offset inflationary pressures for CPSE employees. The revised DA rates will be applicable to executives at both Board and below-Board levels, along with non-unionized supervisors.

The 1987, 1992, 1997, 2007, and 2017 pay scales are based on the government's pay commission recommendations, which establish the salary structure for public sector employees.

For employees drawing pay under the 1987 scales, the allowance has been revised to ₹356. The total amount payable at an average All India Consumer Price Index (AICPI) of 9611 is ₹17,812 per eligible executive and supervisor, according to the Finance Ministry. The 1992 pay scales have 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. For subsequent pay scales, the revised DA rates are 462.7% for 1997, 233.2% for 2007, and 51.8% for 2017, the ministry stated.

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

The Department of Public Enterprises (DPE) officially announced the IDA rate revision. The revised rates are applicable to executives holding board-level and below board-level positions, as well as non-unionized supervisors in CPSEs.

These revisions are based on the latest AICPI data and adhere to the standard neutralization mechanism employed to mitigate the impact of inflation on CPSE employees. The Finance Ministry's consolidated order confirms that the updated DA rates will be uniformly applied to executives at all levels, including those on the Board and below, and to non-unionized supervisors.