PSU IDA Rates from 01.07.2021, Check IDA Calculation Formula

Find the PSU IDA rates of old and expecting Industrial Dearness Allowance from 01.07.2021 applicable for 2nd / 3rd PRC working employees & Pensioners of PSUs under GOI, Check the IDA calculation formula based on Price Index number…

IDA or Industrial Dearness Allowance is a type of allowance given to the employees of Public Sector Enterprises (PSEs) under the Government of India, as well as for the Pensioners as per the price index number declared by the labor bureau.

However, IDA is not a compulsory allowance when it comes to private sector employees, and this means the private sector companies are not forced to give their employees this kind of allowance.

Also, IDA rates gets modified quite frequently, because of the inflation rate on a quarterly basis to decrease the burden of inflation, where in addition to that, the government came up with different allowance plans for the employees, along with extra benefits.

So the employees can cope up with the situation, One of the main reason why CPI notices a rapid rise is because of the frequent changes in the IDA rates, Moreover, you should know that Industrial Dearness Allowance rates modified on the basis of the previous 3 months AICPIN or All India Consumer Price Index Number.

Check PSU IDA Rates for 3rd PRC Employee from 01.07.2021

PSU IDA Rates Table for 2nd PRC Employees

From	To	Rate of Industrial Dearness Allowance (IDA)	% IDA Increase
01.07.21	30.09.2021	173.6 (Expecting)	3.1% Expecting)
01.04.2021	30.06.2021	170.5	-1
01.01.2021	31.03.2021	171.5 %	6.1%
01.10.2020	31.12.2020	165.4	5.5%
01.07.2020	30.09.2020	159.9	-0.8%
01.04.2020	31st July 2020	160.7	3.4%
01.01.2020	31.03.2020	157.3	5.3
01.10.2019	31.12.2019	152	5.3
1.7.2019	30.09.2019	146.7	5.3
1.4.2019	30.6.2019	141.4	2.6
1.1.2019	31.3.2019	138.8	3.2
1.10.2018	31.12.2018	135.6	7.6
1.7.2018	30.9.2018	128	0.8
1.4.2018	30.6.2018	127.2	0.3
1.1.2018	31.3.2018	126.9	2.6
1.10.2017	31.12.2017	124.3	5.3
1.7.2017	30.9.2017	119	1.9
1.4.2017	30.6.2017	117.1	-2.4
1.1.2017	31.3.2017	119.5	-0.8
1.10.2016	31.12.2016	120.3	5.5
1.7.2016	30.9.2016	114.8	2.4
1.4.2016	30.6.2016	112.4	0
1.1.2016	31.3.2016	112.4	4.5
1.10.2015	31.12.2015	107.9	5.3
1.7.2015	30.9.2015	102.6	2.1
1.4.2015	30.06.2015	100.5	0.2
1.1.2015	31.3.2015	100.3	2.2
1.10.2014	31.12.2014	98.1	6.8
1.7.2014	30.9.2014	91.3	2.9
1.4.2014	30.6.2014	88.4	-2.1
1.1.2014	31.3.2014	90.5	5
1.10.2013	31.12.2013	85.5	6.6
1.7.2013	30.9.2013	78.9	4
1.4.2013	30.6.2013	74.9	3.4
1.1.2013	31.3.2013	71.5	4.2
1.10.2012	31.12.2012	67.3	5.8
1.7.2012	30.9.2012	61.5	4.8
1.4.2012	30.6.2012	56.7	0
1.1.2012	31.3.2012	56.7	4.7
1.10.2011	31.12.2011	52	4.8
1.7.2011	30.9.2011	47.2	0
1.4.2011	30.6.2011	47.2	4.2
1.1.2011	31.3.2011	43	3.2
1.10.2010	31.12.2010	39.8	4.7
1.7.2010	30.9.2010	35.1	0.3
1.4.2010	30.6.2010	34.8	3.9
1.1.2010	31.3.2010	30.9	5.6
1.10.2009	31.12.2009	25.3	6.8
1.7.2009	30.9.2009	18.5	1.6
1.4.2009	30.6.2009	16.9	0.3
1.1.2009	31.3.2009	16.6	3.7
1.10.2008	31.12.2008	12.9	3.7
1.7.2008	30.9.2008	9.2	2.9
1.4.2008	30.6.2007	6.3	0.5
1.1.2008	31.3.2008	5.8	1.6
1.10.2007	31.12.2007	4.2	2.9
1.7.2007	30.9.2007	1.3	0.5
1.4.2007	30.6.2007	0.8	0.8
1.1.2007	31.3.2007	0	0

After confirming the latest AICPIN by labour bureau, any PSU released the enhanced IDA rates order to their units for implementation of new IDA at new rates from the corresponding month.

How to Calculate IDA (Industrial Dearness Allowance) for 2nd PRC

How to calculate IDA, Well, Calculation of PSU IDA rates is not really a tough job to do, and you should know that IDA rate revision is based on the All India Consumer Price Index Numbers.

Usually after second pay revision with effect from 01.01.2007, the base index has also been revised to 01.01.2007, which is 126.33, so to know the IDA increase rate, we will need to figure out the All India Consumer Price Index for Industrial Workers [CPI(IW)] for the previous three months.

Also, for the IDA revision w.e.f. 1st January, CPI numbers of September, November, December is required, and from 01/04, January, February and March CPI numbers required , where as 1st July of a year, the CPI of March, April, and May are required, and for IDA revision from 1st October, CPI of June, July and August are required, and so on, Once you have the average CPI of the last three months, you will need to use this below formula to calculate Industrial DA rates for PSU, and this formula is:

IDA Calculation Formula for 2nd PRC employee

• New IDA rate = (Average CPI – Base Index) * 100
• Base Index = 126.33
• Increase in IDA rate = New IDA rate – Old IDA rate
  • For Example:
    • If CPI for March 2020 is 326, April 2020 is 329 and May 2020 expecting is 334, and the average CPI is 329.66, then the calculation would be
    • [(329.66 – 126.33) / 126.33] * 100  = 160.95(170)

Expecting IDA Rates from 01.10.2021 for 2nd PRC PSU Employees

CPI Month	Index Number	Status	% of DA Increase from October 2021 (Expecting)
June 21	349	Expecting	—
July 21	353	Expecting	—
August 21	355	Expecting	—

GOI announced the freezing of IDA up to 30.06.2021, now from 1st July 2021 as per the given calculation the total DA may paid to all employees. As of date 10.6% IDA is pending to pay for employees.