What is Industrial DA?

Posted on 10th Jul 2018 | 4681 views

5 avg. rating (100% score) - 1 votes

Industrial DA or IDA (Industrial dearness allowance) is a type of allowance given to the public and government sector employees and also pensioners. DA is not a compulsory allowance in case of private sector employees i.e, private sector companies are not forced to give DA. IDA is modified frequently because of the inflation rate on a quarterly basis. To decrease the burden of inflation (a rapid increase of price index), the government has come up with different allowance plans and extra benefits for the employee so that he/she can cope with the situation. The rapid rise in CPI (Consumer Price Index) is the main factor for frequent change in IDA. IDA is modified quarterly by taking the average of previous 3 months AICPI ( All India Consumer Price Index).

IDA from October 2017

IDA from October 2017:

IDA from October 2017 is modified in the recent circular issued by that the government of India declaring an increase of 5.3% of IDA giving a total of 124.3% IDA w.e.f October 2017. Before October 2017, IDA is at 119%.
In order to calculate the IDA, AICPI for past 3 months along with Base index is required.
For the year 2017, the AICPI index for the months of June, July and August are respectively at 280, 285, 285 with an average of 283.33 and AICPI for average on 01 Jan 2017 is 277.33 with an increase of 6 points. Base index with effect from 2007 is 126.33 for public sector employees whereas for employees from central government base index is 115.76
The formula for calculating is IDA or for central government and public sector employees is given below:
IDA formula

0 Comments on What is Industrial DA?

Comment as a guest:


What is Appointment letter Format?

26th Jun 2018

Top 10 facts why you need a cover letter?

08th Jun 2018

Are you looking for a job in Event Management?

28th May 2018

Pharmaceutical job opportunities on rise in Gulf

23rd May 2018

MNC Vs Startup: Are you Confused to Choose between?

09th Aug 2017

Perspectives of Unemployment in India

01st Jul 2013

Have your Say!

View All

How consistently does your organization reward you for good work?

Very difficult

Reasonably consistently

Not at all consistently


Press Corner

View All

All rights reserved © 2020 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status