Good news for CPSE employees: Dearness Allowance to increase from July 1, 2026; find out how it will impact your salary.
There is good news for executives and non-unionized supervisors working in Central Public Sector Enterprises (CPSEs) under the Central Government.
The Department of Public Enterprises (DPE) has released the new rates for the Industrial Dearness Allowance (IDA), effective from July 1, 2026. Employees falling under various pay scales will benefit from this decision, resulting in an increase in their Dearness Allowance.
IDA is an allowance paid in line with inflation, aimed at mitigating the impact of rising prices on employees' income. It is periodically reviewed based on inflation data.
Which employees will the new IDA apply to?
The new rates will apply to CPSE employees working under the following pay scales:
1987 Pay Scale
1997 Pay Scale
2007 Pay Scale
2017 Pay Scale
In other words, if you are employed in a CPSE under any of these pay scales, you will receive the benefit of the revised IDA starting July 1, 2026.
What are the new IDA rates?
According to the DPE notification, the new IDA rates effective from July 1, 2026, are as follows:
| Pay Scale | Revised IDA |
|---|---|
| 2017 Pay Scale | 55.7% |
| 2007 Pay Scale | 241.7% |
| 1997 Pay Scale | 476.9% |
| 1987 Pay Scale | ₹18,298 (based on the average AICPI of 9,854) |
How will it impact the salary?
The increase in IDA will directly affect employees' monthly salaries. However, the hike will not be uniform for all employees; it will depend on factors such as the employee's basic pay, their pay scale, and their current salary structure.
For instance, if an employee has a basic pay of ₹50,000 and falls under the 2017 pay scale, their IDA would amount to ₹27,850 based on the new rate of 55.7%. The actual increase may vary for each employee.
Who are CPSE employees?
CPSEs, or Central Public Sector Enterprises, are companies owned by the Central Government. They operate across various sectors such as energy, infrastructure, manufacturing, and financial services.
The salary and allowance structure for employees of these companies differs from that of regular Central Government employees; consequently, the IDA (Industrial Dearness Allowance) for them is also determined under a separate arrangement.
The Department of Public Enterprises has directed all administrative ministries and departments to inform the CPSEs under their purview about the new IDA rates so that they can be implemented effective July 1, 2026.
