The revision applies to employees covered under the 1987, 1997, 2007 and 2017 pay scales followed by CPSEs.
Dearness Allowance is an inflation-linked salary component that helps employees offset the impact of rising prices. The allowance is revised periodically based on changes in inflation indicators.
New IDA rates for CPSE employees
Under the revised structure, the IDA rates applicable from July 1, 2026, are:
- 2017 pay scale: 55.7%
- 2007 pay scale: 241.7%
- 1997 pay scale: 476.9%
For employees following the 1987 pay scale, the memorandum said the IDA payable has been calculated at ₹18,298 based on an average All India Consumer Price Index (AICPI) level of 9,854.
How will the revision impact salary?
The increase in IDA will raise the monthly salary component linked to inflation. The actual increase will depend on an employee’s basic pay, applicable pay scale and existing salary structure.
For instance, an employee with a basic pay of ₹50,000 under the 2017 pay scale would see an IDA component of ₹27,850 at the revised 55.7% rate. The final salary impact will vary across employees.
What are CPSE employees?
Central Public Sector Enterprises are government-owned companies operating across sectors such as energy, infrastructure, manufacturing and financial services. Employees of these organisations follow separate pay structures and allowance systems compared with central government employees.
The Department of Public Enterprises has asked administrative ministries and departments to communicate the revised rates to CPSEs under their control for implementation.
First Published: Jul 22, 2026 3:05 PM IST
