Find the PSU IDA rates of old and expecting Industrial Dearness Allowance from 01.07.2020 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 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.
PSU IDA Rates Table for 2nd PRC Employees
|From||To||Rate of Industrial Dearness Allowance (IDA)||% IDA Increase|
|01.04.2020||31st July 2020||160.7||3.4%|
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)
- For Example:
Expecting IDA Rates from 01.10.2020 for 2nd PRC PSU Employees
|CPI Month||Index Number||Status||% of DA Increase from October 20|