IDA Industrial Dearness Allowance is given to Central Public Sector Enterprise employees like NALCO, BHEL, BEL, NTPC, SAIL, and UCIL. It is revised quarterly in January, April, July, and October based on AICPI-IW. CDA Central Dearness Allowance is for central government employees, revised twice yearly. IDA and CDA rates differ significantly and should not be confused.

PSU IDA basic pay scales look like ₹20,600–3%–46,500 where ₹20,600 is minimum, 3% is annual increment, and ₹46,500 is maximum. Annual increment is 3% of basic pay rounded to nearest ₹10. Different from 7th CPC pay matrix. PSUs have separate scales for Executives (E0–E9) and Non-Executives (W0–W8).

Standard IDA PSU allowances: IDA at current quarterly rate. HRA: 30% in X cities, 20% in Y cities, 10% in Z cities. Perks and Allowances: 35% for executives, 25-30% for non-executives. Medical reimbursement, LTC, Performance Related Pay (PRP) as variable annual bonus, CPF/EPF contribution.

IDA is revised quarterly in January, April, July, and October based on average AICPI-IW for the previous quarter. Current approximate rate for 2026 is 56.1%. Verify with your PSU HR as rates vary. For every 1% increase in IDA, effective pay increase depends on basic pay.

In IDA pattern PSUs, PF is calculated on basic pay only, not on IDA. Employee contribution is 12% of basic. Employer also contributes 12% (3.67% to EPF and 8.33% to EPS up to ₹15,000 basic). Many executives opt for CPF Contributory Provident Fund instead of defined benefit pension.

Executive grades E0–E9 get Perks and Allowances at 35% of basic. Non-executive/Worker grades W1–W8 get 25-30%. Executives also get Performance Related Pay (PRP) as annual variable component. Senior executives in E7-E9 get company car, club membership, and enhanced LTC.