Understanding Revised Pay Scales and Calculating IDA Increases for PSU Employees from 2008 to 2010

Dear Seniors,

Please help me out.

1. We are a government PSU and are receiving unrevised pay scales with a 50% Dearness Allowance (DP). I want to know the revised rates applicable to the old pay scales (with 50% DP) effective from 01.01.2008 to 2010.

2. Additionally, could you please guide me on how to calculate further increases of Industrial Dearness Allowance (IDA) on a quarterly basis in the above scenario?

Thanks & regards,
R. Narwal

Dear Narwal,

First of all, please note that the 50% DA merger is effective from 01.01.2007 (not 1.1.08). On 1.1.2007, the IDA corresponding to AICPI (base 1960) of 2884 points is 68.8%. Out of this, 50% will be changed as Dearness Payment, equal to the basic. The difference in DA with respect to basic = 68.8 - 50 = 18.8. Additional DA for DP = 18.8 x 50% = 9.4. Hence, the total DA on 1.1.2007 = 50 (DP) + 18.8 (difference in DA) + 9.4 (enhanced DA due to the implication of 50% DP) = 78.2%.

Similarly, on 1.10.2010, the calculation will be as follows: DP = 50, Difference in DA = 136.1 - 50 = 86.1. Additional DA for DP = 86.1 x 50% = 43.1. Total DA = 50 + 86.1 + 43.1 = 179.2.

On 1.1.2011, the calculation will be as follows: DP = 50, Difference in DA = 141.5 - 50 = 91.5. Additional DA for DP = 91.5 x 50% = 45.8. Total DA = 50 + 91.5 + 45.8 = 187.3. The in-between quarters can also be calculated in the same manner.

Abbas P.S, ITI Ltd, PALAKKAD - 678 623 Ph. +91 9447 467 667