CPSE staffs DA, basic to be merged

New Delhi, Jan 30 | Updated: Jan 31 2008, 09:48am hrs
The government has decided to merge 50% industrial dearness (IDA) allowance with the basic pay of employees of profit-making central public sector enterprises, raising their allowances and retirement benefits.

The proposal would benefit employees following Industrial Dearness Allowance pattern of pay scales in CPSEs which are in a position to absorb the additional expenditure without budgetary support, information and broadcasting minister Priya Ranjan Dasmunsi said after a cabinet meeting.

The proposal for IDA merger with basic pay will apply to CPSE functionaries at board level, below board level executives and non-unionised supervisors with effect from Jan 1, 2007.

In case of unionised workmen, the Board (of the CPSEs) may take a decision after negotiation with the union, Dasmunsi said. The scheme, he added, will also apply to the employees of the Food Corporation of India.

PTI