Expected IDA from 1st July 2021, for CPSE, PSU and Govt. employees

DA for central government  employees has been increased from 17 % to 28 % with effect from 1st July 2021. So, same good news may come very soon for PSU, CPSE by DPE.

AICPIN-IW for May 2021 has been released by Labour ministry on 30.06.2021. After declaration of AICPIN-IW for May 2021, the IDA from 1st July 2021 for PSU or CPSE of 3rd PRC and 2nd PRC and others are known to us.

  1. IDA from 1st July 2021 will be increased by 1.44 % over last quarter and IDA rate will be 24.64 % for 2017 (3rd PRC) CPSE or PSU employees. In addition to DA hike, for 3rd PRC, if IDA crosses 25%, then HRA will also be hiked from 24%/16%/8% to 27%/18%/9% of basic pay, for class X, Y, Z cities respectively. For Details of HRA increment from 1st July 2021- Click here.
  2. IDA from 1st July 2021 will be increased by 3.12 % over last quarter and IDA rate will be 173.62 % for 2007 (2nd PRC) CPSE or PSU employees.
DA hike for CPSE or PSU employees of 3rd PRC template
DA hike for CPSU or PSU employees of 2nd template

Major Contents in the Post: (Jump to the Section)

  1. IDA for CPSE, PSU and Govt. employees from 1st July 2021
  2. IDA for CPSE, PSU and Govt. employees from 1st April 2021
  3. AICPIN -IW of last 3 months
  4. Past IDA data of 3rd PRC or 2017 scale, Past IDA data of 2nd PRC or 2007 scale
  5. Past IDA data of 1997 pay scale, Past IDA data of 1987 and 1992 pay scale
  6. Calculation or formula for IDA of 3rd PRC, Calculation or formula for IDA of 2nd PRC
  7. Pay revision documents of 3rd PRC, 2nd PRC and more.
  8. Freezing of IDA, Dearness Allowances for CPSE employees till 30th June 2021

IDA from 1st July 2021 Calculation for 3rd PRC PSU, CPSE:

Calculation of IDA rate for 3rd PRC or 2017 pay scale from 1st July 2021
Calculation of IDA rate for 3rd PRC or 2017 pay scale from 1st July 2021

IDA from 1st July 2021 Calculation for 2nd PRC PSU, CPSE:

Calculation of IDA rate for 2nd PRC or 2007 pay scale from 1st July 2021
Calculation of IDA rate for 2nd PRC or 2007 pay scale from 1st July 2021

IDA calculation for CPSE, PSU and Govt. employees w.e.f. 1st July 2021:

Government of India has released AICPIN data for Mar’21, Apr’21 and May’21. With these average AICPIN numbers, the IDA will change from from 1st July 2021 for 2017 (3rd PRC) pay scales. Similarly, the IDA from 1st July 2021 for 2nd PRC will change for 2007 (2nd PRC) pay scales.

But, these IDA changes had not applied to our salary as IDA changes had been freezed till 30th June 2021. And the IDA effective from 1st July 2020 continued till 30.06.2021. So, we were only calculating the IDA for future purpose as all these IDA rate changes will be added with effect from 1st July 2021.

This change in Industrial Dearness Allowance (IDA) are for employees of Central Public Sector Enterprises. Below are the current IDA change for 2017 or 3rd PRC, 2007 or 2nd PRC, 1997, 1987 & 1992 CPSE employees with effect from 1st July, 2021.

IDA rate from July 2021 for 2nd PRC and 3rd PRC pay scale (w.e.f. 01.07.2021):

From 01.07.2021, IDA will increase to 24.64 %, increment of 1.44 % for 3rd PRC or 2017 pay scale employees. For 2nd PRC or 2007 pay scale, IDA will increase to 173.62 %, increment of 3.12 %.

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 July 2021 will be 24.64 %, increased by 1.44 % for 2017 pay scale.
  2. IDA for 2nd PRC from 1st July 2021 will be 173.62 %, increased by 3.12 % for 2007 pay scale.
  3. IDA from from 1st July 2021 is yet to be declared for 1997 pay scale.
  4. IDA from from 1st July 2021 is yet to be declared for1987 & 1992 pay scale (based on the pay-band).

AICPI-IW (Industrial workers) for the past months:

  1. 30.06.2021 – May 2021 AICPIN – 347 (Click Here to download) (120.6x 2.88 = 347)
  2. 31.05.2021 – April 2021 AICPIN – 346 (Click Here to download) (120.1x 2.88 = 346)
  3. 30.04.2021 – March 2021 AICPIN – 344 (Click Here to download) (119.6 x 2.88 = 344)
  4. 31.03.2021 – February 2021 AICPIN – 343 (Click Here to download) (119 x 2.88 = 343)
  5. 26.02.2021 – January 2021 AICPIN – 340 (Click Here to download) (118.2 x 2.88 = 340)
  6. 29.01.2021 – December 2020 AICPIN – 342 (Click Here to download) (118.8 x 2.88 = 342)
  7. 31.12.2020 – November 2020 AICPIN – 345 (Click Here to download) (119.9 x 2.88 = 345)

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 June 2021, July 2021 and August 2021 by the Ministry of labour and employment, the IDA from 1st October 2021 for PSU, CPSE and Govt. employees will be decided for 3rd PRC, 2nd PRC, 1997 pay scale and 1987 & 1992 pay scale 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 scales 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
01.07.2021 to 30.09.2021 24.64 %173.62 %Not yet announced Not yet announced
01.04.2021 to 30.06.2021 23.2 %, But kept same at 18.4% 170.5 %, But kept same at 159.9% Same as DA from 01.07.20 Same as DA from 01.07.20
01.01.2021 to 31.03.202123.7 %, But kept same at 18.4%171.5 %, But kept same at 159.9%Same as DA from 01.07.20Same as DA from 01.07.20
01.10.2020 to 31.12.202020.9 %, But kept same at 18.4%165.4 %, But kept same at 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 last 3 quarters:
  • Feb 2021 = 343
  • Jan 2021 = 340
  • Dec 2020 = 342
  • Average of the quarter = 342
  • Link point = 277.33 (as on 01.01.2017)
  • Increase over Link point = 64.67 = [342 – 277.33]
  • DA rate effective from 01.04.2021 = 23.32 = [(64.67/ 277.33) x 100]

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

  • Average AICPI (2001=100) for the last 3 quarters:
  • Feb 2021 = 343
  • Jan 2021 = 340
  • Dec 2020 = 342
  • Average of the quarter = 342
  • Link point = 126.33 (as on 01.01.2007)
  • Increase over Link point = 215.67 = [342 – 126.33]
  • DA rate effective from 01.04.2021 = 170.7 = [(215.67 / 126.33) x 100]

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

This IDA freezing decision will directly affect about 15 lakh employees of more than 180 Central Public Sector Enterprises (CPSEs) like ONGC, NTPC, Powergrid, BEML, BEL, AIA, Coal India, FCI, IOCL, BPCL, HPCL, MOIL, BSNL, MTNL and others.

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:

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.

The highlights of the Freezing IDA order for CPSE employees:

  1. IDA will be freezed till 30th June 2021.
  2. IDA rate from 01.07.2020 will 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 and 01.04.2021.
  4. No arrears will be paid for these 3 missed quarters (01.10.2020, 01.01.2021, 01.04.2021).
Freezing DA rates for IDA pay scales up to 30.06.2021
Freezing DA rates for IDA pay scales up to 30.06.2021

Pay revision documents of CPSE employees (source: DPE) :

Disclaimer: Kindly refer dpe.gov.in for any inconsistencies in rules, understandings and clarification.

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