The Industrial Dearness Allowance (IDA) calculation formula plays a crucial role in determining the compensation of public sector employees, helping them cope with inflation through systematic adjustments to their basic salary.
IDA Calculation Formula for PSU Employees
The current formula for calculating IDA in public sector undertakings is:
Industrial DA = [ (Average of AICPIN for last 3 months - 126.33) / 126.33 ] * 100
This formula specifically applies to central public sector employees, using the All-India Consumer Price Index (AICPI) as its foundation.
Current IDA Rates and Projections
For January 2025, PSU employees can expect the following IDA adjustments as expected IDA from January 2025
| Pay Scale Year | Expected IDA Change | Total IDA |
|---|---|---|
| 2017 Scale | -0.16% | 47.53% |
| 2007 Scale | -0.32% | 223.87% |
Key Components Affecting IDA Calculation
- Base Index: The calculation uses 126.33 as the base index for public sector employees.
- Consumer Price Index: The average AICPI for the previous three months determines the percentage increase.
- Quarterly Revisions: Unlike central government employees’ DA, IDA undergoes quarterly adjustments to better reflect market changes.