Allowance Increase- The central government has given a gift to the employees of the 2017 pay scale. The government has announced to revise the rate of their Industrial Dearness Allowance (IDA) to 49 percent from July 1, 2025. These employees are working in public sector undertakings (CPSEs) and the dearness allowance of officers and supervisors at board level and below has been revised.
Based on earlier order of DPE
The Department of Public Enterprises (DPE) under the Finance Ministry has issued this order. The order clearly states that this increase has been made on the basis of the earlier order of DPE, under which the 2017 pay scale was implemented.
Information sent to ministries and administrative departments
The order also said that all ministries and administrative departments will have to immediately send this information to the public sector undertakings under them so that payments can be made on time. Industrial Dearness Allowance (IDA) is increased every 6 months and is based on the Consumer Price Index (CPI).
This new rate of 49% reflects that the inflation level has increased in the last few months and the employees are being compensated for it. This increase will directly increase the monthly salary of the employees. Especially those officers and supervisors who are on the 2017 scale will get immediate benefit from this.
8th Pay Commission Update
About 1.1 crore people can get benefit from 8th Pay Commission, which includes about 44 lakh central government employees and about 68 lakh pensioners. After the implementation of 8th Pay Commission, there will be growth in the basic salary, allowances and retirement benefits of the employees. An important part of deciding the new salary is the fitment factor, this is the number which is used to multiply the existing basic salary to decide the new salary. Example- The Seventh Pay Commission used a factor of 2.57. At that time, it increased the minimum basic salary from Rs 7,000 to Rs 18,000 per month. The report says that this time the fitment factor can be between 1.83 and 2.46. The exact figure will play an important role in how much increase the employees and pensioners will get.