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Benefit for employees of profit-making CPSEs

Special Correspondent

Cabinet nod for merger of 50 per cent IDA with basic pay

NEW DELHI: The Union Cabinet on Wednesday approved the merger of 50 per cent industrial dearness allowance (IDA) with the basic pay of profit-making Central Public Sector Enterprise (CPSE) employees which would effectively increase their allowances and retirement benefits.

Briefing newspersons after the Cabinet meeting, Information and Broadcasting Minister Priyaranjan Dasmunsi said: “The proposal will 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.”

The merger of IDA with basic pay is to be applicable to the board level functionaries of CPSEs, executives below the board level and non-unionised supervisors with effect from January 1, 2007. “In [the] case of unionised workmen, the board [of each CPSE] may take a decision after negotiation with the union,” Mr Dasmunsi said.

Also for FCI

The consequent benefits by way of upward revision in emoluments will also apply to employees of the Food Corporation of India. The board of directors of the CPSEs can decide on the merger of DA with the approval of their administrative Ministry.

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