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).
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