IDA from 1st April 2021 Calculation, for CPSE, PSU and Govt. employees, while IDA is freezed till 30th June 2021

AICPIN-IW for March 2021 has been released by Labour ministry on 30.04.2021. After declaration of AICPIN-IW for April and May 2021, the IDA from 1st July 2021 can be calculated.

Already, the IDA calculation has been updated till March 2021 for DA hike from April 2021, which is shown below in the table for CPSE or PSU employees. But, below change won’t apply till 30.06.2021.

  1. IDA from 1st April 2021 will be decreased by 0.50% after releasing of February 2021 AICPIN-IW on 31.03.2021 and IDA rate will be 23.20 % for 2017 (3rd PRC) CPSE or PSU employees.
  2. IDA from 1st April 2021 will be decreased by 1.04% after releasing of February 2021 AICPIN-IW on 31.03.2021 and IDA rate will be 170.46 for 2007 (2nd PRC) CPSE or PSU employees.
Calculation of IDA for CPSE wef 1st Apr 2021 for 3rd PRC and 2nd PRC
Calculation of IDA for CPSE wef 1st Apr 2021 for 3rd PRC and 2nd PRC

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

  1. Freezing of IDA, Dearness Allowances for CPSE employees till 30th June 2021
  2. IDA for CPSE, PSU and Govt. employees from 1st July 2021
  3. IDA for CPSE, PSU and Govt. employees from 1st April 2021
  4. IDA for CPSE, PSU and Govt. employees from 1st January 2021
  5. IDA for CPSE, PSU and Govt. employees from 1st October 2020
  6. IDA rate calculation for 2nd PRC and 3rd PRC from 1st October 2020
  7. AICPIN -IW of last 3 months
  8. Past IDA data of 3rd PRC or 2017 scale
  9. Past IDA data of 2nd PRC or 2007 scale
  10. Past IDA data of 1997 pay scale
  11. Past IDA data of 1987 and 1992 pay scale
  12. Calculation or formula for IDA of 3rd PRC
  13. Calculation or formula for IDA of 2nd PRC
  14. Pay revision documents of 3rd PRC, 2nd PRC and more.

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

Government of India has released AICPIN data for Dec’20, Jan’21 and Feb’21 data have come on 31.03.2021. With these average AICPIN numbers, the IDA will change from from 1st April 2021 for 2017 (3rd PRC) pay scales. Similarly, the IDA from 1st April 2021 for 2nd PRC will change for 2007 (2nd PRC) pay scales.

But, these IDA changes won’t apply to our salary as IDA changes have been frezzed till 30th June 2021. And the IDA effective from 1st July 2020 will continue till 30.06.2021. So, we are 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 April, 2021.

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IDA rate from April 2021 for 2nd PRC and 3rd PRC pay scale (w.e.f. 01.04.2021):

From 01.04.2021, IDA will decrease to 23.2 %, decreased by 0.50 % for 3rd PRC or 2017 pay scale employees. For 2nd PRC or 2007 pay scale, IDA will decrease to 170.46 %, decreased by 1.04 % after declaration of February AICPIN on 31.03.2021.

Since, the DA increments have been freezed, so the DA from 1st Apr’21 number will be added while calculating DA from 1st July 2021.

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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 April 2021 will be 23.2 %, decreased by 0.50 % for 2017 pay scale.
  2. IDA for 2nd PRC from 1st April 2021 will be 170.46 %, decreased by 1.04 % for 2007 pay scale.
  3. IDA from from 1st April 2021 is yet to be declared for 1997 pay scale.
  4. IDA from from 1st April 2021 is yet to be declared for1987 & 1992 pay scale (based on the pay-band).

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AICPI-IW (Industrial workers) for the last 3 months:

  1. 30.04.2021 – March 2021 AICPIN – 344 (Click Here to download) (119.6 x 2.88 = 344)
  2. 31.03.2021 – February 2021 AICPIN – 343 (Click Here to download) (119 x 2.88 = 343)
  3. 26.02.2021 – January 2021 AICPIN – 340 (Click Here to download) (118.2 x 2.88 = 340)
  4. 29.01.2021 – December 2020 AICPIN – 342 (Click Here to download) (118.8 x 2.88 = 342)
  5. 31.12.2020 – November 2020 AICPIN – 345 (Click Here to download) (119.9 x 2.88 = 345)
  6. 27.11.2020 – October 2020 AICPIN – 344 (Click Here to download) (119.5 x 2.88 = 344)

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 March 2021, April 2021 and May 2021 by the Ministry of labour and employment, the IDA from 1st July 2021 for PSU, CPSE and Govt. employees will be decided for 3rd PRC, 2nd PRC, 1997 pay scale and 1987 & 1992 pay scale etc.

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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
01.07.2021 to 30.09.2021
01.04.2021 to 30.06.2021 23.2 %, But will be paid 18.4% 170.5 %, But will be paid 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 will be paid 18.4%171.5 %, But will be paid 159.9%Same as DA from 01.07.20Same as DA from 01.07.20
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

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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]

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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:

  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, 0101.2021, 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) :

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

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