Big decision of Central Government, IDA increased, effective from July 1

By Samira Vishwas On Jul 25, 2026

New Delhi: The Central Government has announced big relief for the employees of Central Public Sector Enterprises (CPSE). The Department of Public Enterprises (DPE) has issued an order to increase the Industrial Dearness Allowance (IDA) for executive and non-union supervisory employees of CPSEs.

Increased IDA will be available from July 1

According to the government’s decision, the increased Industrial Dearness Allowance will be applicable from July 1, 2026. It has been calculated on the basis of All India Consumer Price Index (AICPI), so that the impact of rising inflation on the income of employees can be reduced.

Which employees will get the benefit?

This revised IDA will be applicable to those employees who are working in CPSEs under the pay scales of 1987, 1997, 2007 and 2017. This includes employees in the executive and non-union supervisory categories. These companies operate in important sectors such as energy, infrastructure, manufacturing, mining, transportation and financial services.

New orders will be implemented in all CPSEs

The Department of Public Enterprises has issued instructions to all administrative ministries and departments to timely implement these new rates in the public undertakings under their control. After this, the concerned companies will make the payment by adding the revised IDA to the employees’ salary.

What will be the benefit to the employees?

The increase in dearness allowance will directly increase the monthly salary of the employees. Amid rising inflation, this decision is considered to provide economic relief. This will improve the purchasing power of the employees and will help in reducing the burden of daily expenses to some extent.

What is Industrial Dearness Allowance?

Industrial Dearness Allowance (IDA) is an allowance given to CPSE employees, the purpose of which is to compensate for the impact of inflation. It is reviewed from time to time on the basis of Consumer Price Index (AICPI). When inflation increases, its rates are revised, so that the income of the employees remains realistically balanced.